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 $ 19,900 13,500 5,200 2,500 42,500 NELSON COMPANY Unadjusted Trial Balance January 31 Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-Store equipment Accounts payable Common stock Retained earnings Dividends 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 $ 18,800 17,000 5,000 25,000 116,050 2,250 1,850 2,150 38,000 13,000 13,000 9,000 9,000 3 10,000 $ 181,850 $ 181,850 Additional Information: a. Store supplies still available at fiscal year-end amount to $2,700. b. Expired insurance, an administrative expense, is $1,650 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 $10,000 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. 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 Journal entry worksheet 1 2 3 Store supplies still available at fiscal year-end amount to $2,700. Note: Enter debits before credits Transaction General Journal Debit Credit Income Statement For Year Ended January 31 Expenses Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses Prepare a single-step income statement for the year ended January 31. NELSON COMPANY Income Statement For Year Ended January 31 Expenses Total expenses