Additional Information:

1. Store supplies still available at fiscal year-end amount to $1,850.
2. Expired insurance, an administrative expense, is $1,450 for the fiscal year.
3. Depreciation expense on store equipment, a selling expense, is $1,500 for the fiscal year.
4. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,400 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. 3. Prepare a single-step income statement for the year ended January 31. REQUIRED 1: 1.Store supplies still available at fiscal year-end amount to $1,850. 2.Expired insurance, an administrative expense, is $1,450 for the fiscal year. 3.Depreciation expense on store equipment, a selling expense, is $1,500 for the fiscal year. 4.To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,400 of inventory is still available at fiscal year-end. REQUIRED 2: REQUIRED 3:

Required information [The following information applies to the questions displayed below.] 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 Credit Debit $ 19,150 15,000 5,800 2,200 42,900 $ 19, 250 12,000 4,000 29,000 2,200 114,900 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Sales salaries expense Office salaries expense Insurance expense Rent expense-Selling space Rent expense-Office space Store supplies expense Advertising expense Totals 2,000 2,200 38,000 0 13,400 13,400 0 6,500 6,500 0 9,900 $179,150 $179, 150 NELSON COMPANY Income Statement For Year Ended January 31 Expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses Prepare a single-step income statement for the year ended January 31. NELSON COMPANY Income Statement For Year Ended January 31 Expenses Total expenses