Required information [The following information applies to the questions displayed below.) 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. NELSON COMPANY Unadjusted Trial Balance January 31 Credit Debit $ 26,800 12,500 5,300 2,600 42,700 $ 19,900 13,000 5,000 30,000 2,250 115,300 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 1,850 2,300 38,000 0 13,550 13,550 0 6,000 6,000 0 9,800 1 Prey 2 of 2 Next > 4-5A Saved JU, Vuu 2,250 115,300 ReLaneu anys 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 1,850 2,300 38,000 0 13,550 13,550 0 6,000 6,000 9,800 $183,200 $183,200 Additional Information: a. Store supplies still available at fiscal year-end amount to $1,800. 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 $10,500 of inventory is still available at fiscal year-end. 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. Prev 1 2 of 2 Next > Required information of 2 Required 1 Required 2 Required 3 Using the above information, prepare adjusting journal entries. View transaction list pok int Journal entry worksheet ences 1 2 3 4 Store supplies still available at fiscal year-end amount to $1,800. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Prey 1 2 of 2 Next > w Edmonds Commu... M Gmail i Edmonds Commu... Saved 4-5A Required information Expenses Selling expenses * ces Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses
