Physical count ending merchandise inventory taken

  
Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Nelson Company uses a perpetual inventory system.
  
Additional Information:

Required:
1. Using the above information prepare adjusting journal entries:
2. Prepare a multiple-step income statement for fiscal year 2017.
3. Prepare a single-step income statement for fiscal year 2017.

4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2017. (Round your answers to 2 decimal places.)

Store supplies                            1750

Prepaid insurance                     1000                          Current ratio: 14650/10000 à 1.465 à 1.47

Gross margin ratio = (Gross profit / Net Sales) x 100

Net sales                     $107750                      Gross margin ratio: 67750/107750 = 0.63