categorizes the remaining expenses as general and administrative. NELSON COMPANY Unadjusted Trial Balance January 31 Debit...

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categorizes the remaining expenses as general and administrative. NELSON COMPANY Unadjusted Trial Balance January 31 Debit Credit Cash $ 29,250 Merchandise inventory 13,500 Store supplies 5,000 Prepaid insurance 2,300 Store equipment 42,500 Accumulated depreciation-Store equipment $ 16,150 Accounts payable 16,000 J. Nelson, Capital 37,000 J. Nelson, Withdrawals 2,300 Sales 116,250 Sales discounts 1,850 Sales returns and allowances 2,300 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expense 13,000 Office salaries expense 13,000 Insurance expense 0 Rent expense-Selling space 6,500 Rent expense-Office space 6,500 Store supplies expense 0 9,400 $ 185,400 $ 185,400 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 $1,600 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. Problem 5-5A (Algo) Parts 1, 2 and 3 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. categorizes the remaining expenses as general and administrative. NELSON COMPANY Unadjusted Trial Balance January 31 Debit Credit Cash $ 29,250 Merchandise inventory 13,500 Store supplies 5,000 Prepaid insurance 2,300 Store equipment 42,500 Accumulated depreciation-Store equipment $ 16,150 Accounts payable 16,000 J. Nelson, Capital 37,000 J. Nelson, Withdrawals 2,300 Sales 116,250 Sales discounts 1,850 Sales returns and allowances 2,300 Cost of goods sold 38,000 Depreciation expense-Store equipment 0 Sales salaries expense 13,000 Office salaries expense 13,000 Insurance expense 0 Rent expense-Selling space 6,500 Rent expense-Office space 6,500 Store supplies expense 0 9,400 $ 185,400 $ 185,400 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 $1,600 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. Problem 5-5A (Algo) Parts 1, 2 and 3 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.