Problem 4-5A Preparing adjusting entries and income statements; computing gross margin, acid-test, and current ratios LO A1, A2, P3, P4 [The following information applies to the questions displayed below] The following unadjusted trial balance is prepared at fiscal year-end for Neison 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. Additional information: 0. Store supplies still available at fiscal year-end amount to $2,400. b. Expired insurance, an administrative expense, is $1,750 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 $10,700 of inventory is still available at fiscal year-end Problem 4.5A 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 . 3. Prepare a single-step income statement for the year ended January 31. Journal entry worksheet 4 Store supplies still available at fiscal year-end amount to $2,400. Note: Enter debits before credits. Journal entry worksheet Expired insurance, an administrative expense, is $1,750 for the fiscal year. Note: Enter debits before credits. Journal entry worksheet Depreciation expense on store equipment, a selling expense, is $1,600 for the fiscal year. Note: Enter debits before credits. Journal entry worksheet To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,700 of inventory is still available at fiscal year-end. Note: Enter debits before credits. Predare a multiple-step income statement for the year ended January 31. Prepare a single-step income statement for the year ended January 31