[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. NELSON COMPANY Unadjusted Trial Balance January 31 Debit Credit Cash $ 14,250 Merchandise inventory 15,000 Store supplies 6,000 Prepaid insurance 2,500 Store equipment 43,000 Accumulated depreciation-Store equipment $ 18,800 Accounts payable 17,000 Common stock 3,000 Retained earnings 26,000 Dividends 2,250 Sales 115,700 Sales discounts. 1,900 Sales returns and allowances 2,200 Cost of goods sold 38,000 Depreciation expense-Store equipment Sales salaries expense 14,350 office salaries expense 14,350 Insurance expense 0 Rent expense-Selling space 8,500 Rent expense-Office space Store supplies expense Advertising expense Totals 8,500 0 9,700 $ 180,500 $ 180,500 Additional Information: a. Store supplies still available at fiscal year-end amount to $2,550. b. Expired insurance, an administrative expense, is $1,750 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,575 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,500 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 that begins with gross sales and 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. Complete this question by entering your answers in the tabs below. Required: 1. Using the above information, prepare adjusting journal entries. 2. 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. 3. Prepare a single-step income statement for the year ended January 31. ded Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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. NELSON COMPANY Income Statement For Year Ended January 31 Sales Less: Sales discounts Less: Sales returns and allowances $ Net sales Cost of goods sold Gross profit Expenses Selling expenses Depreciation expense-Store equipment Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense 0 0 ***** 0 00000 000 Total selling expenses General and administrative expenses Office salaries expense Insurance expense Rent expense-Office space Total general and administrative expenses Total expenses 300 0 0 0 0 Required information Store supplies expense Advertising expense Totals Additional Information: 9,700 $ 180,500 $ 180,500 a. Store supplies still available at fiscal year-end amount to $2,550. b. Expired insurance, an administrative expense, is $1,750 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,575 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $ 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 that begins with gross sale categories for net sales, cost of goods sold, selling expenses, and general and administrative expense: 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 Prepare a single-step income statement for the year ended January 31. NELSON COMPANY Income Statement For Year Ended January 31 Net sales Expenses Cost of goods sold Selling expenses General and administrative expenses Total expenses < Required 2 x 0 Required 3 "Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted