5 Part 1 of 2 The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense-Store Equipment, Sales Salaries Expense, Rent Expense-Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. 4.16 points NELSON COMPANY Unadjusted Trial Balance January 31 Debit Credit References Dividends Sales Cash Skipped Merchandise inventory Store supplies Prepaid insurance eBook Store equipment Accounts payable Print Common stock Retained earnings $ 21,150 12,500 5,200 2,300 42,500 Accumulated depreciation-Store equipment $ 17,150 14,000 5,000 33,000 2,000 116,000 Sales discounts 1,900 Sales returns and allowances 2,300 Cost of goods sold 38,000 Depreciation expense-Store equipment Sales salaries expense 15,350 Office salaries expense 15,350 Insurance expense 0 Rent expense-Selling space 8,500 Rent expense-Office space 8,500 Store supplies expense Advertising expense Totals 0 9,600 $ 185,150 $ 185,150 Additional Information: Additional Information: a. Store supplies still available at fiscal year-end amount to $2,800. b. Expired insurance, an administrative expense, is $1,700 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,650 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,000 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 the year ended January 31 that begins with gross sales and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. 3. Prepare a single-step income statement for the year ended January 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the above information, prepare adjusting journal entries. View transaction list Journal entry worksheet < 1 2 3 4 Store supplies still available at fiscal year-end amount to $2,800. Note: Enter debits before credits. Transaction a. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 Expired insurance, an administrative expense, is $1,700 for the fiscal year. Note: Enter debits before credits. Transaction b. General Journal Debit Credit Record entry Clear entry 7 View general journal Required 1 Required 2 > View transaction list Journal entry worksheet 1 2 3 4 Depreciation expense on store equipment, a selling expense, is $1,650 for the fiscal year. Note: Enter debits before credits. Transaction C. General Journal Debit Credit View general journal Record entry Clear entry > Journal entry worksheet < 1 2 3 4 To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $11,000 of inventory is still available at fiscal year-end. Note: Enter debits before credits. Transaction d. General Journal Debit Credit Record entry Clear entry View general journal