10. The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.

NELSON COMPANY Unadjusted Trial Balance January 31, 2017
	Debit			Credit
Cash	$	4,500
Merchandise inventory		14,000
Store supplies		5,800
Prepaid insurance		2,600
Store equipment		42,500
Accumulated depreciationStore equipment				$	17,600
Accounts payable					14,000
Common stock					3,400
Retained earnings					17,000
Dividends		2,050
Sales					115,500
Sales discounts		2,050
Sales returns and allowances		2,300
Cost of goods sold		38,000
Depreciation expenseStore equipment		0
Salaries expense		31,000
Insurance expense		0
Rent expense		13,000
Store supplies expense		0
Advertising expense		9,700
Totals	$	167,500		$	167,500

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:

Store supplies still available at fiscal year-end amount to $2,300.

Expired insurance, an administrative expense, for the fiscal year is $1,750.

Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year.

To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,600 of inventory is still available at fiscal year-end.

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.

Answer is not complete. Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Required 3 Prepare a single-step income statement for fiscal year 2017. NELSON COMPANY Income Statement For Year Ended January 31, 2017 10,600 Net sales Expenses Cost of goods sold Selling expenses General and administrative expenses Total expenses Net income K Required 2 Required3