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. Credit Debit $1,000 12,500 5,800 2,400 42,900 $ 15,250 10,000 32,000 2,200 NELSON COMPANY Unadjusted Trial Balance January 31 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable J. Nelson, Capital J. Nelson, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Depreciation expense-Store equipment Sales salaries expense Office salaries expense Insurance expense Rent expense-Selling space Rent expense-office space Store supplies expense Advertising expense Totals 111,950 2,000 2,200 38,400 17,500 17,500 @ 7,500 7,500 e 9,800 $ 169,200 $ 169,200 Additional Information: Connie silniki in rand 017 Prev cm 1 2 of 2 : Next > a. Store supplies still available at fiscal year-end amount to $1,750. b. Expired insurance, an administrative expense, is $1,400 for the fiscal year. c. Depreciation expense on store equipment, a selling expense, is $1,525 for the fiscal year. d. 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 separato 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 Using the above Information, prepare adjusting journal entries. View transaction list View journal entry worksheet No Transaction Debit Credit General Journal Store supplies expense Store supplies Prev 1 2 of 2 !!! Next >