NELSON COMPANY Unadjusted Trial Balance January 31 Credit Debit $ 20,550 13,500 5,400 2,100 42,700 $ 19,150 12,000 6,000 31,000 2,050 116,000 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 1,950 2,200 38,000 0 14,400 14,400 8,500 8,500 0 9,900 $184,150 $184,150 Additional Information: a. Store supplies still available at fiscal year-end amount to $2,600. b. Expired insurance, an administrative expense, is $1,650 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,625 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. $ 116,000 (1,950) (2,200) Income Statement For Year Ended January 31 Sales Less: Sales discounts $ Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Expenses Selling expenses Depreciation expenseStore equipment ($ Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense (4,150) 111,850 (38,000)| 73,850 1,625 14,400 8,500 2,800 9,900 ense 37,225 Total selling expenses General and administrative expenses Insurance expense Office salaries expense Rent expense-Office space $ 1,650| 14,400 8,500 24,550 Total general and administrative expenses Total expenses Net income 61,775 12,075 $ 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