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 Expense-Store Equipment, Sales Salaries Expense, Rent Expense-Selling 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 $ 20,450 Merchandise inventory 13,000 Store supplies 5,600 Prepaid insurance 2,200 Store equipment 43,000 Accumulated depreciation-Store equipment $ 16,900 Accounts payable 17,000 3. Nelson, Capital 30,000 3. Nelson, Withdrawals 2,300 Sales 115,400 Sales discounts 1,800 Sales returns and allowances 2,250 Cost of goods sold 38,000 Depreciation expense-Store equipment Sales salaries expense 12,600 Office salaries expense 12,600 Insurance expense Rent expense-Selling space 8,000 Rent expense-Office space 8,000 9,500 $ 179,300 $ 179,300 Store supplies expense Advertising expense Totals Additional Information: a. Store supplies still available at fiscal year-end amount to $2,400. b. Expired insurance, an administrative expense, is $1,450 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,625 for the fiscal year. d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,200 of inventory is still available at fiscal year-end. Journal entry worksheet < 1 2 3 4 Store supplies still available at fiscal year-end amount to $2,400. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 > Journal entry worksheet > 1 2 3 4 Expired insurance, an administrative expense, is $1,450 for the fiscal year. Note: Enter debits before credits. Transaction b. General Journal Debit Credit Record entry Clear entry View general journal Required 1 Required 2 Journal entry worksheet < 1 2 3 4 Depreciation expense on store equipment, a selling expense, is $1,625 for the fiscal year. Note: Enter debits before credits. Transaction C. General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet > 1 2 3 4 To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,200 of inventory is still available at fiscal year-end. Note: Enter debits before credits. Transaction d. General Journal Debit Credit Clear entry Record entry View general journal Required 1 Required 2 > 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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. NELSON COMPANY Income Statement For Year Ended January 31 Expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses 0 0 0 0 0 0