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 $ 17,150 Merchandise inventory 14,000 Store supplies 5,800 Prepaid insurance. 2,500 Store equipment 42,600 Accumulated depreciation-Store equipment $ 18,050 Accounts payable 15,000 Common stock 5,000 Retained earnings 30,000 Dividends 2,300 Sales 116,050 Sales discounts 2,050 Sales returns and allowances 2,000 Cost of goods sold 38,000 Depreciation expense-Store equipment e Sales salaries expense 14,850 Office salaries expense 14,850 Insurance expense Rent expense-Selling space 9,000 Rent expense-Office space. 9,000 Store supplies expense Advertising expense: Totals 10,000 $ 184,100 $184,100 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 $1,575 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise Inventory is taken. It shows $10,500 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