45 Connect HW 1 The following information applies to the que

4-5 Connect HW 1 The following information applies to the questions displayed below The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Part 1 of 2 Unadjusted Trial Balance January 31, 2017 0 oints Cash Merchandise inventory Store supplies Prepaid insurance store equipment Accumulated depreciation-store equipment Accounts payable Common stock Retained earnings Dividends Sales Sales discounts sales returns and allowances Cost of goods sold Depreciation expense-store $ 8,650 15,000 5,800 2,700 42,700 s 19,100 17,000 3,000 15,000 2,000 115, 500 1,850 2, 300 38,000 1.02 . of.2 Next >

Solution

Adjusting entries 1 Store supplies expense 3300 (5800-2500)                Store supplies 3300 2 Insurance expense 1500                Prepaid insurance 1500 3 Depreciation expense-store equipment 1675                Accumulated depreciation - store equipment 1675 4 Cost of goods sold 4600 (15000-10400)               Merchandise inventory 4600