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The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. NELSON COMPANY Unadjusted Trial Balance January 31, 2017 Debit Credit Cash $

The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.

NELSON COMPANY Unadjusted Trial Balance January 31, 2017
Debit Credit
Cash $ 46,550
Merchandise inventory 13,000
Store supplies 5,500
Prepaid insurance 2,800
Store equipment 42,600
Accumulated depreciationStore equipment $ 19,800
Accounts payable 16,000
J. Nelson, Capital 18,000
J. Nelson, Withdrawals 2,250
Sales 153,600
Sales discounts 2,000
Sales returns and allowances 2,200
Cost of goods sold 38,000
Depreciation expenseStore equipment 0
Salaries expense 27,100
Insurance expense 0
Rent expense 16,000
Store supplies expense 0
Advertising expense 9,400
Totals $ 207,400 $ 207,400

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:

  1. Store supplies still available at fiscal year-end amount to $1,850.
  2. Expired insurance, an administrative expense, for the fiscal year is $1,450.
  3. Depreciation expense on store equipment, a selling expense, is $1,650 for the fiscal year.
  4. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,300 of inventory is still available at fiscal year-end.

rev: 10_24_2018_QC_CS-145044

Required:

1. Using the above information prepare adjusting journal entries: 2. Prepare a multiple-step income statement for fiscal year 2017. 3. Prepare a single-step income statement for fiscal year 2017.

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