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	$	6,150
Merchandise inventory		15,000
Store supplies		5,700
Prepaid insurance		2,700
Store equipment		42,600
Accumulated depreciationStore equipment				$	17,550
Accounts payable					14,000
J. Nelson, Capital					18,000
J. Nelson, Withdrawals		2,100
Sales					115,250
Sales discounts		1,850
Sales returns and allowances		2,100
Cost of goods sold		38,000
Depreciation expenseStore equipment		0
Salaries expense		25,800
Insurance expense		0
Rent expense		13,000
Store supplies expense		0
Advertising expense		9,800
Totals	$	164,800		$	164,800

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:

Store supplies still available at fiscal year-end amount to $1,850.

Expired insurance, an administrative expense, for the fiscal year is $1,750.

Depreciation expense on store equipment, a selling expense, is $1,525 for the fiscal year.

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.

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.