Problem 4-5A Part 1, 2 and 3

Required: 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.

Check my work Part 1 of 2 Required information Problem 4-5A Preparing adjusting entries and income statements; computing gross margin, acid-test, and current ratios LO A1, A2, P3, P4 (The following information applies to the questions displayed below.] 1.66 points The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense-Store Equipment, Sales Salaries Expense, Rent Expense-Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. eBook NELSON COMPANY Unadjusted Trial Balance January 31 Print Credit $ Debit 1,000 12,500 5,800 2,400 42,900 References $ 15,250 10,000 5,000 27,000 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 2,200 111,950 2,000 2,200 38,400 0 17,500 17,500 0 7,500 7.500 Mc Graw Hill Check my work Part 1 of 2 Required information Problem 4-5A Preparing adjusting entries and income statements; computing gross margin, acid-test, and current ratios LO A1, A2, P3, P4 (The following information applies to the questions displayed below.] 1.66 points The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson Company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense-Store Equipment, Sales Salaries Expense, Rent Expense-Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. eBook NELSON COMPANY Unadjusted Trial Balance January 31 Print Credit $ Debit 1,000 12,500 5,800 2,400 42,900 References $ 15,250 10,000 5,000 27,000 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 2,200 111,950 2,000 2,200 38,400 0 17,500 17,500 0 7,500 7.500 Mc Graw Hill