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

Store supplies still available at fiscal year-end amount to $2,650.

Expired insurance, an administrative expense, for the fiscal year is $1,760.

Depreciation expense on store equipment, a selling expense, is $6,700 for the fiscal year.

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.

Step 1 for transactions 1-4 prepare required adjusting journal entries and for transactions 5-8 prepare the required closing entries

Step 2 Prepare a multiple step income statement tab

Step 3 Prepare a single step income statement using the values from the multiple step income statement

Step 4 Prepare a classified balance sheet

Step 5 calculate the current ratio, acid test ratio, and gross margin ratio

Thank you!

Nelson Company Trial Balance January 31, 2017 Account Title Debit Credit 13,750 11,000 2,650 1,040 67,000 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation Store equip Accounts payable J. Nelson, Capital J. Nelson, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense - Store equip Salaries expense Insurance expense Rent expense Store supplies expense Advertising expense 36,850 13,600 41,000 6,200 130,000 3,900 4,100 39,700 6,700 34,000 1,760 13,600 5,300 10,750 221,450 $ Total 221,450