The following unadjusted trial balance is prepared at fiscal year end for Nelson company. Nelson company uses a perpetual inventory system. It categorize 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.

Cash Merchandise inventory Store supplies Prepaid insurance Store equipment NELSON COMPANY Unadjusted Trial Balance January 31 Accumulated depreciation-Store equipment Accounts payable Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Sales salaries expense office salaries expense Insurance expense Rent expense-Selling space Rent expense-office space Store supplies expense Advertising expense Totals Debit $ 13,300 13,000 6,000 2,500 43,000 Problem 4-5A (Algo) Parts 1, 2 and 3 2,050 1,900 2,050 38,000 0 14,250 14,250 9,000 9,000 Credit $ 19,850 13,000 4,000 25,000 116, 150 9,700 $ 178,000 $ 178,000 Additional Information: a. Store supplies still available at fiscal year-end amount to $2,100. b. Expired insurance, an administrative expense, is $1,450 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,700 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,100 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 that 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