The following unadjusted trial balance is prepared at fiscal year-end for FAB Products Company. FAB PRODUCTS COMPANY Unadjusted trial balance October 31,2011 Debit Credit Cash $4,400 Merchandise Inventory 23,000 Store supplies 9,600 Prepaid insurance 4,600 Store equipment 83,800 Accumulate depreciation-store equipment $30,000 Accounts payable 16,000 A.Fab,Capital 64,000 A,Fab,Withdrawals 2,000 Sales 208,000 Sales discounts 2,000 Sales returns and allowances 4,000 Cost of goods sold 74,800 Depreciation expense-store equipment 0 Salaries expense 62,000 Insurance expense 0 Rent expense 28,000 Store supplies expense 0 Advertising expense 19,800 Totals 318,000 318,000 Rent expense and salaries expense are equally divided between selling activities and the general and administrative activities. FAB Products Company uses a perpetual inventory system. Required. 1. Prepare adjusting journal entries to reflect each of the following. a. Store supplies still available at fiscal year-end amount to $3,300 b. Expired insurance, an administrative expense, for the fiscal year is $3,000. c. Depreciation expense on store equipment, a selling expense, is $2,800 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $22,200 of inventory is still available at fiscal year-end. 2. Prepare a multiple-step income statement for fiscal year 2011. 3. Prepare a single-step income statement for fiscal year 2011. 4. Compute the current ratio ,acid-test ratio,and gross margin ratio as October 31,2011