prepare adjusting journal entries, prepare multi-step income statement, prepare single-step income statement.

NELSON COMPANY Unadjusted Trial Balance January 31, 2817 Debit Credit 45,480 13,500 5,280 2,300 43,800 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable 0. Nelson, Capital 3. Nelson, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Salaries expense Insurance expense Rent expense Store supplies expense Advertising expense Totals 19,480 14,000 19,080 2,150 154, 680 1,958 2,288 38,000 38,500 13,060 207,000 $297,000