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 Store supplies Prepaid insurance Store equipment Cash Merchandise inventory Accumulated depreciation-Store equipment Debit $ 14,050 Credit 13,500 5,700 2,100 42,500 $ 18,900 Accounts payable 13,000 Common stock 3,000 Retained earnings 25,000 Dividends 2,150 Sales 116,500 Sales discounts 2,000 Sales returns and allowances 2,300 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expense 14,150 office salaries expense 14,150 Insurance expense Rent expense-Selling space 8,000 Rent expense-Office space: 8,000 Store supplies expense Advertising expense Totals 0 9,800 $ 176,400 $ 176,400 Additional Information: a. Store supplies still available at fiscal year-end amount to $2,350. b. Expired insurance, an administrative expense, is $1,600 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,500 for the fiscal year d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,900 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