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 $ 3,300 Merchandise inventory 14,000 Store supplies 5,400 Prepaid insurance 2,300 Store equipment 42,500 Accumulated depreciationStore equipment $ 19,850 Accounts payable 15,000 Common stock 3,200 Retained earnings 16,000 Dividends 2,000 Sales 114,700 Sales discounts 1,900 Sales returns and allowances 2,150 Cost of goods sold 38,000 Depreciation expenseStore equipment 0 Salaries expense 30,700 Insurance expense 0 Rent expense 17,000 Store supplies expense 0 Advertising expense 9,500 Totals $ 168,750 $ 168,750

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:

Store supplies still available at fiscal year-end amount to $2,800. Expired insurance, an administrative expense, for the fiscal year is $1,500. Depreciation expense on store equipment, a selling expense, is $1,675 for the fiscal year. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,300 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.