The fiscal year$-$end unadjusted trial balance for Sanchez Company is found on the trial balance tab.

Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Sanchez Company uses a perpetual inventory system.

Descriptions of items that require adjusting entries on January $31,2019,$ follow.

a$.$ Store supplies still available at fiscal year$-$end amount to $$2,600.$

b$.$ Expired insurance, an administrative expense, for the fiscal year is $$1,740.$

c$.$ Depreciation expense on store equipment, a selling expense, is $$6,600$ for the fiscal year.

d$.$ To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $$11,000$ of inventory is still available at fiscal year$-$end.

Requirement

General

General

Trial Balance

Multiple Step

IS

Single Step IS

Balance Sheet

Begin by selecting "Adjusted" from the drop$-$down below. Then, use the adjusted trial balance to prepare a multiple$-$step income statement. Rent expense and salaries expense are equally divided between selling activities and the general and administrative activities.

Adjusted