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	$	35,750
Merchandise inventory		14,500
Store supplies		5,300
Prepaid insurance		2,800
Store equipment		42,600
Accumulated depreciation—Store equipment				$	18,250
Accounts payable					17,000
Common stock					3,000
Retained earnings					15,000
Dividends		2,000
Sales					147,150
Sales discounts		1,850
Sales returns and allowances		2,100
Cost of goods sold		38,000
Depreciation expense—Store equipment		0
Salaries expense		31,600
Insurance expense		0
Rent expense		14,000
Store supplies expense		0
Advertising expense		9,900
Totals	$	200,400		$	200,400

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:

2. Store supplies still available at fiscal year-end amount to $1,950.
4. Expired insurance, an administrative expense, for the fiscal year is $1,750.
6. Depreciation expense on store equipment, a selling expense, is $1,700 for the fiscal year.
8. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,900 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 fiscal year 2017.
3. Prepare a single-step income statement for fiscal year 2017.

Prepare a single-step income statement for fiscal year 2017.

NELSON COMPANY
Income Statement
For Year Ended January 31, 2017
Expenses
Total expenses		0