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 $ 25,000
Common stock 10,00
...
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 $ 25,000
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]
.png)
