The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company NELSON COMPANY Unadjusted Trial Balance January 31, 2018 Debit $ 6,900 13,500 5,400 2,700 42,600 Credit Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable Common stock Retained earnings Dividends S 18,700 13,000 3,400 17,000 2,050 Sales 114,900 Sales discounts 1.900 2,250 38,000 Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Salaries expense 26,000 Insurance expense 16,000 Rent expense Store supplies expense Advertising expense 9,700 $167,000 $167,000 Totals 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: a. Store supplies still available at fiscal year-end amount to $2,600. b. Expired insurance, an administrative expense, for the fiscal year is $1,550. c. Depreciation expense on store equipment, a selling expense, is $1,675 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 for fiscal year 2018. 3. Prepare a single-step income statement for fiscal year 2018. Complete this questions by entering your answers in the below tabs. Saved Required 2 Required 1 Required 3 Using the above information prepare adjusting journal entries: View transaction list X Import a new list Store supplies still available at fiscal year-end amount to $2,600. 1 Expired insurance, an administrative expense, for the fiscal year is $1,550. 2 Depreciation expense on store equipment, a selling expense, is $1,675 for the fiscal year 3 Credit 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. 4 Note: journal entry has been entered Clear entry Record entry View general journal Required 1 Required 2 Required 3 Prepare a multiple-step income statement for fiscal year 2018. NELSON COMPANY Income Statement For Year Ended January 31, 2018 Expenses Seling expenses Total seling expenses General and administrative expenses otal general and adn ve expenses Total expenses Complete this questions by entering your answers in the below tabs. equired 1 Required 2 Required 3 Prepare a single-step income statement for fiscal year 2018. NELSON COMPANY Income Statement For Year Ended January 31, 2018 Expenses Total expenses Required 3 Required 2
