The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON COMPANY Unadjusted Trial Balance January 31, 2017 Credit Debit $ 35,900 14,000 5,200 2,500 43,000 $ 18,450 15,000 19,000 2,100 146,100 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable 3. Nelson, Capital J. Nelson, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Salaries expense Insurance expense Rent expense Store supplies expense Advertising expense Totals 1,900 2,250 38,000 31,800 12,000 a 9,900 $198,550 $198,550 Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Nelson Company uses a perpetual inventory system. Additional Information: a. Store supplies still available at fiscal year-end amount to $2,250. b. Expired insurance, an administrative expense, for the fiscal year is $1,650. c. Depreciation expense on store equipment, a selling expense, is $1,650 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,100 of inventory is still available at fiscal year-end. NELSON COMPANY Income Statement For Year Ended January 31, 2017 Sales 146,100 $ 1,900 2.250 4,150 141,950 141,950 Less: Sales discounts Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Expense Selling expenses Advertising expense Depreciation expense-Store equipment Sales salaries expense Rent expense-Selling space Store supplies expense $ >>> 9,900 1,650 11,550 Total selling expenses General and administrative expenses Insurance expense Office salaries expense Rent expense-Selling space 0 Total general and administrative expenses Total expenses Net income 11,550 Prepare a single-step income statement for fiscal year 2017. $ 146,100 NELSON COMPANY Income Statement For Year Ended January 31, 2017 Net sales Expenses Cost of goods sold $ 38,000 Selling expenses General and administrative expenses Total expenses 38,000