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, advertising expense. It categorizes the remaining expenses as general and administrative. NELSON COMPANY Unadjusted Trial Balance January 31 Credit Debit $ -1,000 13,500 5,300 2,100 42,900 $ 17,800 13,000 18,000 2,150 114,850 2,050 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable J. Nelson, Capital 3. Nelson, Withdrawals Sales Sales discounts Sales returns and allowances Cost 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 2,25 38,000 14,250 14,250 9,000 9,000 9,900 $ 163,650 $ 163,650 Additional Information: a. Store supplies still available at fiscal year-end amount to $1,650. b. Expired insurance, an administrative expense, for the fiscal year is $1,700. c. Depreciation expense on store equipment, a selling expense, is $1,500 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,200 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the above information prepare adjusting journal entries. View transaction list Journal entry worksheet Store supplies still available at fiscal year-end amount to $1,650. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Required 1 Required 2 Required 3 Using the above information prepare adjusting journal entries. View transaction list Journal entry worksheet Depreciation expense on store equipment, a selling expense, is $1,500 for the fiscal year. Note: Enter debits before credits. Transaction General Journal Debit Credit C. Record entry Clear entry View general journal Required 1 Required 2 Required 3 Using the above information prepare adjusting journal entries. View transaction list Journal entry worksheet To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,200 of inventory is still available at fiscal year-end. Note: Enter debits before credits. General Journal Debit Credit Transaction d. Record entry Clear entry View general journal Required 1 Required 2 Required 3 Prepare a multiple-step income statement for the year ended January 31. NELSON COMPANY Income Statement For Year Ended January 31 0 0 0 Expense Selling expenses 0 Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses 0 0 Required 1 Required 2 Required 3 Prepare a single-step income statement for the year ended January 31. NELSON COMPANY Income Statement For Year Ended January 31 Expenses Total expenses 0
