The following unadjusted trial balance is prepared at fiscal year$-$end for Nelson Company. Nelson Company Additional Information:

a$.$ Store supplies still available at fiscal year$-$end amount to $$1,500.$

b$.$ Expired insurance, an administrative expense, is $$1,700$ for the fiscal year.

c$.$ Depreciation expense on store equipment, a selling expense, is $$1,625$ for the fiscal year.

d$.$ To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $$10,900$ of

inventory is still available at fiscal year$-$end.

Required:

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 $31.$ 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 $31.$Compute the current ratio, acid$-$test ratio, and gross margin ratio as of January $31.$

Note: Round your answers to $2$ decimal places.

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.

required $1$ jorunal:

Store supplies still available at fiscal year$-$end amount to $$1,500.$

Expired insurance, an administrative expense, is $$1,700$ for the fiscal year.

Depreciation expense on store equipment, a selling expense, is $$1,625$ for the fiscal year.

To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $$10,900$ of inventory is still available at fiscal year$-$end.