my Required Information Problem 5-5A Preparing adjusting entries and income statements; computing gross margin, acid- test, and current ratios LO A1, A2, P3, P4 [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, advertising expense. It categorizes the remaining expenses as general and administrative. NELSON COMPANY Unadjusted Trial Balance January 31 Credit Debit $ 5,3ee 14, eee 5,480 2,180 42,988 $ 17,300 18,888 15, eee 2,280 115, Bee Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-store equipment Accounts payable 3. Nelson, Capital J. Nelson, Withdrawals 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 1,850 2,150 38, mee 14,55 14,55e 7,80 7,000 9,1ee $166, 10e $166, 100 Additional Information: a. Store supplies still available at fiscal year-end amount to $1,700. b. Expired insurance, an administrative expense, for the fiscal year is $1,550. c. Depreciation expense on store equipment, a selling expense, is $1.500 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,600 of inventory is still available at fiscal year-end. Problem 5-5A Part 1, 2 and 3 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. 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. View transaction list Journal entry worksheet Store supplies still available at fiscal year-end amount to $1,700. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a multiple-step income statement for the year ended January 31. NELSON COMPANY Income Statement For Year Ended January 31 0 0 0 Expense Selling expenses 0 Total selling expenses General and administrative expenses 0 Total general and administrative expenses Total expenses 0 Problem 5-5A Part 1, 2 and 3 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a single-step income statement for the year ended January 31. NELSON COMPANY Income Statement For Year Ended January 31 Expenses Total expenses