The following unadjusted trial balance is prepared at fiscal year-end for Giaccio Produc...

The following unadjusted trial balance is prepared at fiscal year-end for Giaccio Products Company.

Rent expense and salaries expense are equally divided between selling activities and the general and

administrative activities. Giaccio Products Company uses a perpetual inventory system.

Required

1. Prepare adjusting journal entries to reflect each of the following.

a. Store supplies still available at fiscal year-end amount to $1,650.

b. Expired insurance, an administrative expense, for the fiscal year is $1,300.

c. Depreciation expense on store equipment, a selling expense, is $1,990 for the fiscal year.

d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,600

of inventory is still available at fiscal year-end.

2. Prepare a multiple-step income statement for fiscal year 2009.

3. Prepare a single-step income statement for fiscal year 2009.

4. Compute the current ratio, acid-test ratio, and gross margin ratio as of October 31, 2009.