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

2. Prepare a multi step income statement

3. Prepare a single step income statement

wconnsctmiheducation.comtlow/connecthtml 5-6 January 31, 2037 Debit Credit Cash Merchandise inventory Store supplies Prepaid insurance Store equipment Accumulated depreciation-store equipment Accounts payable J. Nelson, Capital J. Nelson, Withdrawals Sales Sales discounts Sales returns and &llowances; Cost of goods sold Depreciation expense-Store equipment Salaries expense Insurance expense Rent expense Store supplies expense S 7,050 14,000 5,800 500 , 800 $ 19,750 15,000 17,000 2,100 115,850 1, 900 2,250 38,000 0 25,200 17,000 Advertising expense Totals 9,000 $167, 600 $167, 600 K Prev 3 4 of 8 l



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