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.

2. Store supplies still available at fiscal year-end amount to $1,600.
3. Expired insurance, an administrative expense, is $1,450 for the fiscal year.
4. Depreciation expense on store equipment, a selling expense, is $1,675 for the fiscal year.
5. 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.
4. Compute the current ratio, acid-test ratio, and gross margin ratio as og January 31.

Journal entry worksheet 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. Note: Enter debits before credits. 4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31 Note: Round your answers to 2 decimal places. Using the above information, prepare adjusting journal entries. Journal entry worksheet Store supplies still available at fiscal year-end amount to $1,600. Note: Enker debits before credies. \begin{tabular}{|l|r|r|} \hline Total selling expenses & & \\ \hline General and administrative expenses & & \\ \hline & & \\ \hline & & \\ \hline Total general and administrative expenses & & \\ \hline Total expenses & & 0 \\ \hline \end{tabular} Prepare a single-step income statement for the year ended January 31. Journal entry worksheet Expired insurance, an administrative expense, is $1,450 for the fiscal year. Note: Enter debits before credits. 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. Additional Information: a. Store supplies still available at fiscal year-end amount to $1,600. b. Expired insurance, an administrative expense, is $1,450 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,675 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. Journal entry worksheet Depreciation expense on store equipment, a selling expense, is $1,675 for the fiscal year. Note: Enter debits before credits