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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

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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, advertising expense. It categorizes the remaining expenses as general and administrative. NELSON COMPANY Unadjusted Trial Balance January 31 Debit Credit Cash $8,800 Merchandise inventory 12,500 Store supplies 5, 200 Prepaid insurance 2,300 Store equipment 42,600 Accumulated depreciation-store equipment $ 17,800 Accounts payable 18,000 3. Nelson, Capital 19,000 J. Nelson, Withdrawals 2,050 Sales 115,250 Sales discounts 1.850 Sales returns and allowances 2,050 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expense 14.300 office salaries expense 14.300 Insurance expense 0 Rent expense-Selling space 8.500 Rent expense-office space 8.500 Store supplies expense Advertising expense 9,100 Totals $170.050 $170.050 0 a. Store supplies still available at fiscal year-end amount to $2,900, b. Expired insurance, an administrative expense, for the fiscal year is $1,450, c. Depreciation expense on store equipment, a selling expense, is $1,525 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 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

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