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ACCOUNTING_HW.docx.pdf

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Valley Company’s adjusted trial balance on August 31, 2017, its fiscal yearend, follows. Debit Credit Merchandise inventory $ 41,000 Other (noninventory) assets 130,400 Total liabilities $ 25,0... 00 Common stock 10,000 Retained earnings 94,550 Dividends 8,000 Sales 225,600 Sales discounts 2,250 Sales returns and allowances 12,000 Cost of goods sold 74,500 Sales salaries expense 32,000 Rent expense—Selling space 8,000 Store supplies expense 1,500 Advertising expense 13,000 Office salaries expense 28,500 Rent expense—Office space 3,600 Office supplies expense 400 Totals $355,150 $355,150 On August 31, 2016, merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs. Invoice cost of the merchandise purchases $92,000 Purchases discounts received 2,000 Purchases returns and allowances 4,500 Costs of transportation-in 4,600 Required: 1. Compute the company’s net sales for the year. 2. Compute the company’s total cost of merchandise purchased for the year. 3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. 4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses. Compute the company’s net sales for the year. Compute the company’s total cost of merchandise purchased for the year. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses. [Show More]

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