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. Additional Informotion: a. Store supplies still available at fiscal year-end amount to $1,750. b. Expired insurance, an administrative expense, is $1,400 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,525 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,900 of irventory is still available at fiscal year-end. 1. Using the above information, prepare adjusting journal entries. 2. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. 3. Prepare a single-step income statement for the year ended January 31 . Journal entry worksheet Store supplies still available at fiscal year-end amount to $1,750. Note: Enter debits before credits. Journal entry worksheet Expired insurance, an administrative expense, is $1,400 for the fiscal year. Note: Enter debits before credits. Journal entry worksheet Depreciation expense on store equipment, a selling expense, is $1,525 for the fiscal year. Note: Enter debits before credits. Journal entry worksheet 12 To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,900 of inventory is still available at fiscal year-end. Note: Enter debits before credits