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Required information

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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.

Additional Information:

a$.$ Store supplies still available at fiscal year$-$end amount to $$2,200,$

b$.$ Expired insurance, an administrative expense, is $$1,400$ for the fiscal year.

c$.$ Depreciation expense on store equipment, a selling expense, is $$1,525$ 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:

Using the above information, prepare adjusting journal entries.

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.

Prepare a single$-$step income statement for the year ended January $31.$

Complete this question by entering your answers in the tabs below.

categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.

Prepare a single$-$step income statement for the year ended January $31.$