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 Store supplies Prepaid insurance Store equipment $ 16,150 14,000 6,000 2,500 42,700 Accumulated depreciation-Store equipment $ 17,350 Accounts payable. Common stock Retained earnings 17,000 3,000 25,000 Dividends 2,100 Sales 115,000 Sales discounts 1,950 Sales returns and allowances 2,150 Cost of goods soldi 38,000 Depreciation expense-Store equipment 0 Sales salaries expense 13,150 office salaries expense 13,150 Insurance expense 0 Rent expense-Selling space Rent expense-office space 8,000 8,000 Store supplies expense 0 Advertising expense Totals Additional Information 9,500 $177,350 $177,350 a. Store supplies still available at fiscal year-end amount to $2,100. b. Expired insurance, an administrative expense, is $1,400 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 $10,200 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Using the above information, prepare adjusting journal entries. View transaction list Journal entry worksheet 2 3 4 Store supplies still available at fiscal year-end amount to $2,100. Note: Enter debits before credits, Transaction General Journal Debit Credit