NELSON COMPANY Unadjusted Trial Balance January 31 Cash Debit $ 16,950 Credit Merchandise inventory 13,500 Store supplies 5,900 Prepaid insurance 2,800 Store equipment 42,900 Accumulated depreciation-Store equipment $ 19,150 Accounts payable 17,000 J. Nelson, Capital 31,000 J. Nelson, Withdrawals 2,150 Sales 116,300 Sales discounts 1,950 Sales returns and allowances 2,100 Cost of goods sold 38,000 Depreciation expense-Store equipment 10 Sales salaries expense 15,750 Office salaries expense 15,750 Insurance expense Rent expense-Selling space 8,000 Rent expense-Office space 8,000 Store supplies expense Advertising expense Totals 0 9,700 $ 183,450 $ 183,450 Additional Information: Expenses Selling expenses NELSON COMPANY Income Statement For Year Ended January 31 0 0 0 < Prev 3 of 7 Nex Required information Required 1 Required 2 Required 3 Prepare a single-step income statement for the year ended January 31. Expenses NELSON COMPANY Income Statement For Year Ended January 31 Total expenses < Required 2 Required 3> Additional Information: a. Store supplies still available at fiscal year-end amount to $2,400. b. Expired insurance, an administrative expense, is $1,750 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,675 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,200 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. Required 1 Required 2 Required 3 Prepare a single-step income statement for the year ended January 31. NELSON COMPANY income Statement