NELSON COMPANY INC.....

Nelson Company

Trial Balance

YE 12 31 XX

Debit Balances Credit Balances

Accumulated
Cash and Equivalents $ 119,115.00
Depreciation

Accounts Receivable $ 162,500.00 on Store Equipment $ 37,300.00

Merchandise Inventory $ 700,680.00 Accounts Payable $ 118,180.00

Store Equipment $ 215,000.00 Notes Payable $ 143,000.00

Supplies Inventory $ 15,475.00 Common Stock $ 300,000.00

Prepaid Insurance $ 38,250.00 Retained Earnings $ 122,375.00

Selling Expense $ 24,900.00 Sales Revenues $ 716,935.00

Sales Salaries $ 105,750.00

Miscellaneous General
$ 31,000.00
Expenses

Sales Discounts $ 6,220.00

Interest Expense $ 9,300.00

Social Security Tax Expense $ 9,600.00

Total: $ 1,437,790.00 $ 1,437,790.00

The data for the adjustments are:

1. Cost of merchandise sold, $302,990.

2. Depreciation on store equipment, $12,750.

3. Supplies inventory, Jan. 31, $5,210. (Purchases of supplies during the year were debited to the Supplies Inventory account.)

4. Expired Insurance, $4,660.

5. Interest accrued on notes payable, $3,730.

6. Sales salaries earned but not paid to employees, $3,575.

7. Interest earned on savings accounts, but not recorded,$390.

Required:

a. Set up T accounts with the balances given above. OPTIONAL

b. Journalize your adjusting entries (required) and post them, adding other T accounts as necessary (optional)

c. Prepare an income statement for the fiscal year and a fiscal year-end balance sheet.