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

NELSON COMPANY Unadjusted Trial Balance January 31, 2017
	Debit			Credit
Cash	$	32,550
Merchandise inventory		14,000
Store supplies		5,600
Prepaid insurance		2,300
Store equipment		42,900
Accumulated depreciationStore equipment				$	18,000
Accounts payable					17,000
Common stock					3,200
Retained earnings					16,000
Dividends		2,050
Sales					141,750
Sales discounts		1,850
Sales returns and allowances		2,200
Cost of goods sold		38,000
Depreciation expenseStore equipment		0
Salaries expense		29,000
Insurance expense		0
Rent expense		16,000
Store supplies expense		0
Advertising expense		9,500
Totals	$	195,950		$	195,950

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

Additional Information:

1. Store supplies still available at fiscal year-end amount to $1,800.
2. Expired insurance, an administrative expense, for the fiscal year is $1,500.
3. Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year.
4. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,800 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 fiscal year 2017. 3. Prepare a single-step income statement for fiscal year 2017.