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 ExpenseStore Equipment, Sales Salaries Expense, Rent ExpenseSelling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative.

NELSON COMPANY Unadjusted Trial Balance January 31
	Debit			Credit
Cash	$	22,150
Merchandise inventory		13,000
Store supplies		5,100
Prepaid insurance		2,800
Store equipment		42,800
Accumulated depreciationStore equipment				$	19,250
Accounts payable					17,000
Common stock					4,000
Retained earnings					25,000
Dividends		2,100
Sales					115,900
Sales discounts		2,100
Sales returns and allowances		2,000
Cost of goods sold		38,000
Depreciation expenseStore equipment		0
Sales salaries expense		12,900
Office salaries expense		12,900
Insurance expense		0
Rent expenseSelling space		8,000
Rent expenseOffice space		8,000
Store supplies expense		0
Advertising expense		9,300
Totals	$	181,150		$	181,150

Additional Information:

1. Store supplies still available at fiscal year-end amount to $2,350.
2. Expired insurance, an administrative expense, is $1,600 for the fiscal year.
3. Depreciation expense on store equipment, a selling expense, is $1,550 for the fiscal year.
4. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,600 of inventory is still available at fiscal year-end.

. 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.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit

This chart is for each question