The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company NELSON COMPANY Unadjusted Trial Balance January 31, 2018 Debit Credit $ 5,950 12,500 5,300 2,600 42,600 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-store equipment Accounts payable Common stock Retained earnings Dividends 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 17,100 18,000 3,400 17,000 2,200 114,750 1,900 2,200 38,000 31,100 16,000 9,900 $170,250 $178,250 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 avallable at fiscal year-end amount to $2,000. b. Expired insurance, an administrative expense, for the fiscal year is $1,650. c. Depreclation 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 $10,600 of inventory is still avallable at fiscal year-end Required: 1. Using the above information prepare adjusting journal entries: 2. Prepare a multiple-step Income statement for fiscal year 2018 3. Prepare a single-step Income statement for fiscal year 2018