Additional Information: a. Store supplies still available at fiscal year-end amount to $1,850. b. Expired insurance, an administrative expense, is $1,750 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,700 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. 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. NELSON COMPANY Unadjusted Trial Balance January 31 Debit Credit Cash Merchandise inventory $ 19,250 14,500 Store supplies 5,800 Prepaid insurance 2,400 Store equipment 42,800 Accumulated depreciation-Store equipment $ 19,150 Accounts payable 17,000 Common stock Retained earnings 3,000 28,000 Dividends 2,200 Sales 115,900 Sales discounts 1,850 Sales returns and allowances 2,250 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expense 15,800 Office salaries expense 15,800 Insurance expense 0 Rent expense-Selling space 6,500 Rent expense-Office space Store supplies expense Advertising expense Totals Additional Information: 6,500 0 9,400 $ 183,050 $ 183,050 Answer is not complete. 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. 1 No Transaction General Journal a. Store supplies expense Store supplies < Required 1 Required 2 > Debit Credit 1,850 x 1,850 < 1 2 3 Expired insurance, an administrative expense, is $1,750 for the fiscal year. Note: Enter debits before credits. Transaction b. General Journal Debit Credit Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year. Note: Enter debits before credits. Transaction C. General Journal Debit Credit To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,700 of inventory is still available at fiscal year-end. Note: Enter debits before credits. Transaction d. General Journal Debit Credit