NELSON COMPANY Unadjusted Trial Balance January 31 Credit Debit $ 26,500 13,500 5,900 2,600 42,500 $ 18,500 17,000 5,000 28,000 2,150 116,450 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 2,050 2,250 38,000 0 13,050 13,050 0 7,000 7,000 0 9,400 $ 184,950 $ 184,950 Additional Information: a. Store supplies still available at fiscal year-end amount to $1,600. b. Expired insurance, an administrative expense, is $1,400 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year. d. 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. Complete this question by entering your answe swers in the tabs below. Required 1 Required 2 Required 3 S 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. NELSON COMPANY Income Statement For Year Ended January 31 Sales 116,450 Less: Sales returns and allowances 2.250 Less: Sales discounts 2,050 4,300 Net sales 112,150 Cost of goods sold 38,000 X Gross profit 74,150 Expenses Selling expenses Sales salaries expense 13,050 Rent expense-Selling space 7,000 Store supplies expense 4,300 Advertising expense 9,400 Depreciation expenseStore equipment 1,60 IS OOOOOO 35,350 Total selling expenses General and administrative expenses Office salaries expense Insurance expense Rent expense-Office space S 13,050 1,400 7,000 21,450 Total general and administrative expenses Total expenses Net income 56,800