Rent expense and salaries expense are equally divided between selling activities and the general and administrative activities. Nazieh Company uses a perpetual inventory system. Additional Information: a. Store supplies still available at fiscal year-end amount to $1,550. b. Expired insurance, an administrative expense, for the fiscal year is $1,700. Depreciation expense on store equipment, a selling expense, is $1,575 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,100 of inventory is still available at fiscal year-end. C. Required information NAZIEH COMPANY Income Statement For Year Ended January 31, 2015 Sales $ 116,050 Less: Sales discounts $ 1,900 Add: Sales returns and allowances 2,200 4,100 Net sales 111,950 40,900 71,050 Cost of goods sold Gross profit Expense Selling expenses Advertising expense Depreciation expenseStore equipment Rent expense-Selling space Sales salaries expense Store supplies expense 9,800 1,575 7,500 1,550 20,425 Total selling expenses General and administrative expenses 1,700 Insurance expense Office salaries expense 7,500 Rent expense-Office space Total general and administrative expenses 9,200 Total expenses 29,625 Credit NAZIEH COMPANY Unadjusted Trial Balance January 31, 2015 Debit Cash $ 21,350 Merchandise inventory 13,000 Store supplies 5,700 Prepaid insurance 2,400 42,600 Store equipment Accumulated depreciationStore equipment Accounts payable J. Nazieh, Capital J. Nazieh, Withdrawals 2,100 $ 17,900 13,000 39,000 116,050 Sales Sales discounts Sales returns and allowances 1,900 2,200 38,000 0 Cost of goods sold Depreciation expense-Store equipment Salaries expense Insurance expense Rent expense Store supplies expense Advertising expense 31,900 0 15,000 0 9,800 Totals $185,950 $185,950