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

NELSON COMPANY Unadjusted Trial Balance January 31, 2017
	Debit			Credit
Cash	$	32,550
Merchandiseinventory		14,000
Storesupplies		5,600
Prepaidinsurance		2,300
Storeequipment		42,900
Accumulateddepreciation—Store equipment				$	18,000
Accountspayable					17,000
Commonstock					3,200
Retainedearnings					16,000
Dividends		2,050
Sales					141,750
Salesdiscounts		1,850
Sales returnsand allowances		2,200
Cost of goodssold		38,000
Depreciationexpense—Store equipment		0
Salariesexpense		29,000
Insuranceexpense		0
Rentexpense		16,000
Store suppliesexpense		0
Advertisingexpense		9,500
Totals	$	195,950		$	195,950

Rent expense and salaries expense are equally divided betweenselling 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$1,800.
2. Expired insurance, an administrative expense, for the fiscalyear is $1,500.
3. Depreciation expense on store equipment, a selling expense, is$1,600 for the fiscal year.
4. To estimate shrinkage, a physical count of ending merchandiseinventory is taken. It shows $10,800 of inventory is stillavailable at fiscal year-end.

Required:

1. Using the above information prepareadjusting journal entries:
2. Prepare a multiple-step income statement forfiscal year 2017.
3. Prepare a single-step income statement forfiscal year 2017.