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The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.

NELSON COMPANY Unadjusted Trial Balance January 31, 2017
	Debit			Credit
Cash	$	46,550
Merchandise inventory		13,500
Store supplies		5,600
Prepaid insurance		2,300
Store equipment		42,600
Accumulated depreciationStore equipment				$	18,450
Accounts payable					18,000
Common stock					3,600
Retained earnings					18,000
Dividends		2,100
Sales					147,950
Sales discounts		1,900
Sales returns and allowances		2,150
Cost of goods sold		38,000
Depreciation expenseStore equipment		0
Salaries expense		26,600
Insurance expense		0
Rent expense		15,000
Store supplies expense		0
Advertising expense		9,700
Totals	$	206,000		$	206,000

Rent expense and salaries expense are equally divided between selling activities and general and administrative activities. Nelson Company uses a perpetual inventory system.

Additional Information:

1. Store supplies still available at fiscal year-end amount to $2,350.
2. Expired insurance, an administrative expense, for the fiscal year is $1,750.
3. Depreciation expense on store equipment, a selling expense, is $1,525 for the fiscal year.
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.

rev: 10_24_2018_QC_CS-145044

Required:

1. Using the above information prepare adjusting journal entries: 2. Prepare a multiple-step income statement for fiscal year 2017. 3. Prepare a single-step income statement for fiscal year 2017.

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