Requlred 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 Adv$$rtising Expense. It categorizes the remaining expenses as general and administrative.

Additional Information:

a$.$ Store supplies still available at fiscal year$-$end amount to $$1,550.$

b$.$ Expired insurance, an administrative expense, is $$1,500$ for the fiscal year.

c$.$ Depreciation expense on store equipment, a selling expense, is $$1,650$ for the fiscal year.

d$.$ To estimtate shrinkage, a physical count of ending merchandise inventory is taken. It shows $$10,500$ of inventory is still available at fiscal yearend.

Requlred:

Using the above information, prepare adjusting journal entries.

Prepare a multiple$-$step income statement for the year ended January $31$ that begins with gross sales and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.

Prepare a single$-$step income statement for the year ended January $31.$

Complete this question by entering your answers in the tabs below.

Using the above information, prepare adjusting journal entries.

Journal entry worksheet

$1$

$2$

$3$

$4$

Store supplies still available at fiscal year$-$end amount to $$1,550.$

Note knker datis before oredits.

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