Check my work 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 $ 26,85e 13,000 6,000 2,200 42,800 $ 18,600 15, eee 5.000 32.000 2,200 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 116,350 1,80e 2,100 38,000 12,650 12,65e 8,500 8,500 C1R6.95 SIR.95 4 40 12,650 12,650 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 8,500 8,569 9,700 $186,950 $186,950 Additional Information: a. Store supplies still available at fiscal year-end amount to $2.700. b. Expired insurance, an administrative expense, is $1.450 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 $10,800 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 Journal entry worksheet | 1 2 3 4 Store supplies still available at fiscal year-end amount to $2,700. Note: Enter debits before credits Transaction General Journal Debit Credit Journal entry worksheet Expired insurance, an administrative expense, is $1,450 for the fiscal year. Note: Enter debits before credits Transaction General Journal Debit Credit V ous 5 6 of 6 Next > Journal entry worksheet Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year. Note: Enter debits before credits. Transaction General Journal Debit Credit 5 6 of 6 Next > Journal entry worksheet To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,800 of inventory is still available at fiscal year-end. Note: Enter debits before credits Transaction General Journal Debit Credit tout Prey 5 6 of 6 Next > Required information NELSON COMPANY Income Statement For Year Ended January 31 Expenses Selling expenses Pey 5 6 of 6 Next > LAP Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses Required 3 Requited 1 56 of 6 Next Prepare a single-step income statement for the year ended January 31. NELSON COMPANY Income Statement For Year Ended January 31 Expenses Total expenses
