Question
4-3A Computing merchandising amounts and formatting income statements LO C2, P4 Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes
4-3A Computing merchandising amounts and formatting income statements LO C2, P4 Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Merchandise inventory (ending) Other (noninventory) assets Total liabilities Common stock Debit $ 33,000 132,000 Credit $38,115 Retained earnings 44,422 66,207 Dividends 8,000 Sales 225,720 Sales discounts 3,454 Sales returns and allowances 14,898 Cost of goods sold 87.857 Sales salaries expense 38,924 Rent expense-Selling space. 10,609 Store supplies expense 2,709 Advertising expense 19,186 Office salaries expense 28,215 Rent expense-Office space 2,709 Office supplies expense Totals 903 $374,464 $374,464 Beginning merchandise inventory was $26,631. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases $97,020 Purchases discounts received 2,037 Purchases returns and allowances Costs of transportation-in 4,657 3,900 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the company's net sales for the year. Net Sales Sales Net sales Required 1 Required 2 Required 3 Required 4 Jm Compute the company's total cost of merchandise purchased for the year. Cost of Merchandise Purchased Invoice cost of merchandise purchased Purchases discounts received Purchases returns and allowances Costs of transportation-in Total cost of merchandise purchased general and administrative expenses. separate categories for 4. Prepare a single-step income statement that includes these expense categorie and administrative expenses. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Prepare a single-step income statement that includes these expense categories: cost general and administrative expenses. VALLEY COMPANY Income Statement For Year Ended August 31 Expenses Total expenses
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