Merchandising Operations 5.
Required information [The following information opplies to the questions disployed 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. Additional Information: a. Store supplies still available at fiscal year-end amount to $2,600. b. Expired insurance, an administrative expense, is $1,350 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 $10,900 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. Using the above information, prepare adjusting journal entries. Journal entry worksheet Store supplies still available at fiscal year-end amount to $2,600. Note: Enter debits before credits. GENERAL JOURNAL OPTIONS Accounts payable Accounts receivable Accumulated depreciation-Store equipmen Advertising expense Cash Common stock Cost of goods sold Depreciation expense-Store equipment Dividends Insurance expense Merchandise inventory Prepaid insurance Rent expense Retained earnings Salaries expense Sales Sales discounts Sales returns and allowances Store equipment Store supplies Journal entry worksheet Expired insurance, an administrative expense, is $1,350 for the fiscal year. Note: Enter debits before credits. Using the above information, prepare adjusting journal entries. Journal entry worksheet Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year. Note: Enter debits before credits. Using the above information, prepare adjusting journal entries. Journal entry worksheet 1 To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,900 of inventory is still available at fiscal year-end. Note: Enter debits before credits. Prepare a multiple-step income statement for the year ended January 31 that begins with gross sales ar Prepare a multiple-step income statement for the year ended January 31 that begins with gross sales a Accounts payable - Accumulated depreciation - Advertising expense - Cash - Cost of goods sold - Depreciation expense-Store equipment - Insurance expense - Merchandise inventory - Office salaries expense - Prepaid insurance - Rent expense-Office space - Rent expense-Selling space - Sales - Sales salaries expense - Store supplies expense Prepare a single-step income statement for the year ended January 31. \begin{tabular}{|l|l|l|} \hline Required 1 & Required 2 & Required 3 \\ \hline \end{tabular} Prepare a single-step income statement for the year ended January 31
