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

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

Cash..................................$24,200

Merchandise Inventory......12500

Store supplies...................5,500

Prepaid Insurance............2,700

Store equipment...............42,800

Accumulated depreciation - Store equipment...................$19700

Accounts payable..............................................................18000

Common Stock..................................................................5,000

Retained Earnings..............................................................28000

Dividends.............................................2,250

Sales.................................................................................115450

Sales discounts................................2,000

Sales returns and allowances..........2,000

Cost of goods sold............................38000

Depreciation express- Store equipment......0

sales Salaries expense................................13600

office salaries ecpense..............................13,600

Insurance expense............................0

Rent expense-selling space....................................9,000

Rent expense- office space....................................9,000

Store supplies expense......................0

Advertising expense.........................9,800

Totals......................................................$186150.........................186150

Additional Information:

1. Store supplies still available at fiscal year-end amount to $2,500.
2. Expired insurance, an administrative expense, is $1,450 for the fiscal year.
3. Depreciation expense on store equipment, a selling expense, is $1,675 for the fiscal year.
4. 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.

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.

4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31. (Round your answers to 2 decimal places.)