Valley Company’s adjusted trial balance on August 31, 2013, its fiscal year-end, follows.

On August 31, 2012, merchandise inventory was $25,400. Supplementary records of merchandising ac¬ tivities for the year ended August 31, 2013, reveal the following itemized costs.

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 selling expenses and for 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.

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Debit Credit Merchandise inventory Other (noninventory) assets Total liabilities... $ 41,000 130,400 $ 25,000 104,550 K. Valley, Capital .... K.Valley, Withdrawals 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