NELSON COMPANY Unadjusted Trial Balance January 31
	Debit			Credit
Cash	$	25,900
Merchandise inventory		13,500
Store supplies		5,400
Prepaid insurance		2,200
Store equipment		42,800
Accumulated depreciationStore equipment				$	17,300
Accounts payable					17,000
Common stock					5,000
Retained earnings					32,000
Dividends		2,250
Sales					116,550
Sales discounts		2,100
Sales returns and allowances		2,000
Cost of goods sold		38,000
Depreciation expenseStore equipment		0
Sales salaries expense		14,650
Office salaries expense		14,650
Insurance expense		0
Rent expenseSelling space		7,500
Rent expenseOffice space		7,500
Store supplies expense		0
Advertising expense		9,400
Totals	$	187,850		$	187,850

Additional Information: Store supplies still available at fiscal year-end amount to $1,900.

Expired insurance, an administrative expense, is $1,650 for the fiscal year.

Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year.

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.

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.