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.

Additional Information:

1. Store supplies still available at fiscal year-end amount to $2,500.
2. Expired insurance, an administrative expense, is $1,400 for the fiscal year.
3. Depreciation expense on store equipment, a selling expense, is $1,625 for the fiscal year.
4. 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 the year ended January 31 that begins with gross sales and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.
3. Prepare a single-step income statement for the year ended January 31.

Prepare a multiple-step income statement for the year ended January 31 that begins with gross sales and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. ( REQUIRED 2)

NELSON COMPANY INCOME STATEMENT

FOR YEAR ENDED JANUARY 31

1 4 Required information Additional Information: 1. Using the above information, prepare adjusting journal entries. 2. Prepare a multiple-step income statement for the year ended January 31 that begins with gross sales and includes separat categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. 3. Prepare a single-step income statement for the year ended January 31. Complete this question by entering your answers in the tabs below. Prepare a single-step income statement for the year ended January 31. Required information \begin{tabular}{|l|r|r|} \hline Rent expense-Selling space & 9,000 & \\ \hline Sales salaries expense & 12,950 & \\ \hline Store supplies expense & 0 & \\ \hline & & \\ \hline Total selling expenses & & \\ \hline General and administrative expenses & & \\ \hline Insurance expense & 0 & \\ \hline Office salaries expense & 12,950 & \\ \hline Rent expense-Office space & 9,000 & \\ \hline & & \\ \hline Total general and administrative expenses & & 21,650 \\ \hline Total expenses & & 53,600 \\ \hline Net income & & $1,700 \\ \hline \end{tabular} Required 1 Required 3 Complete this question by entering your answers in the tabs below. Using the above information, prepare adjusting journal entries