1.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.2.prepare a single step income statement for the year ended January 313. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31 The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson Company uses aperpetual inventorý system. It categorizes the following accounts as selling expenses: Depreciation Expense-StoreEquipment, Sales Salaries Expense, Rent Expense-Selling Space, Store Supplies Expense, and Advertising Expense. Itcategorizes the remaining expenses as general and administrative.NELSON COMPANYUnadjusted Trial BalanceJanuary 31DebitCreditCashMerchandise inventoryStore suppliesPrepaid insuranceStore equipmentAccumulated depreciation-Store equipmentAccounts payableJ. Nelson, CapitalJ. Nelson, Withdrawals$ 25,75014,5005,1002,20043,000$ 19,15014,00039,0002,300115,700Sales1,8002,10038,000Sales discountsSales returns and allowancesCost of goods soldDepreciation expense-Store equipmentSales salaries expenseOffice salaries expense14,95014,950Insurance expense7,0007,000Rent expense-Selling spaceRent expense-Office spaceStore supplies expenseAdvertising expense9,200$ 187,850$ 187,850TotalsAdditional Information:a. Store supplies still available at fiscal year-end amount to $2,100.b. Expired insurance, an administrative expense, is $1,750 for the fiscal year.c. Depreciation expense on store equipment, a selling expense, is $1,650 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

Name: 1.Prepare a multiple-step income statement for the year ended January
Uploaded: 2024-03-05T11:47:04.000Z
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Description: 1.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.2.prepare a single ste