The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson Company 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. NELSON COMPANY Unadjusted Trial Balance January 31 Debit Credit Cash Merchandise inventory $ 22,900 14,000 Store supplies 5,500 Prepaid insurance Store equipment 2,800 42,900 Accumulated depreciation-Store equipment $ 16,450 Accounts payable 17,000 Common stock 5,000 Retained earnings 30,000 Dividends 2,050 Sales 116,300 Sales discounts 2,050 Sales returns and allowances 2,150 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expense 13,900 Office salaries expense 13,900 Insurance expense 0 Rent expense-Selling space 7,500 7,500 0 9,600 $ 184,750 $ 184,750 Rent expense-Office space. Store supplies expense. Advertising expense Totals Additional Information: a. Store supplies still available at fiscal year-end amount to $1,900. b. Expired insurance, an administrative expense, is $1,400 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year. d. 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 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. 3. Prepare a single-step income statement for the year ended January 31. Required 1 Required 2 Required 3 Using the above information, prepare adjusting journal entries. View transaction list Journal entry worksheet 1 2 3 4 Store supplies still available at fiscal year-end amount to $1,900. Note: Enter debits before credits. Transaction a. General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet 1 2 3 4 Expired insurance, an administrative expense, is $1,400 for the fiscal year. Note: Enter debits before credits. Transaction b. General Journal Debit Credit View general journal Record entry Clear entry > Journal entry worksheet < 1 2 3 4 Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year. Note: Enter debits before credits. Transaction C. General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet 1 2 3 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. Note: Enter debits before credits. Transaction d. General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 Required 3 Prepare a multiple-step income statement for the year ended January 31 that begins categories for net sales, cost of goods sold, selling expenses, and general and admini NELSON COMPANY Income Statement For Year Ended January 31 Expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses Required 1 Required 2 Required 3 Prepare a single-step income statement for the year ended January 31. NELSON COMPANY Income Statement For Year Ended January 31 Expenses Total expenses