Problem 5-3A 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, advertising expense. It categorizes the remaining expenses as general and administrative. Credit $ 34,650 101,650 205,200 Debit Merchandise inventory (ending) $ 30,000 Other (noninventory) assets 120,000 Total liabilities K. Valley, Capital K. Valley, Withdrawals 8,000 Sales Sales discounts 3, 140 Sales returns and allowances 13,543 Cost of 80,224 Sales salaries expense 28, 112 Rent expense-Selling space Store supplies expense 2,462 Advertising expense 17,442 Office salaries expense 25,650 Rent expense-Office space 2,462 Office supplies expense 821 Totals $341,500 goods sold 9,644 $341,500 Beginning merchandise inventory was $24,210. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $88,200 1,852 4,234 3,900 Required 1 Required 2 Required 3 Required 4 Prepare a multiple-step income statement that includes separate categories for net sales, cost and general and administrative expenses. VALLEY COMPANY Income Statement For Year Ended August 31 Sales Less: Sales discounts Less: Sales returns and allowances 0 Net sales 0 0 Expense Selling expenses 0 Total selling expenses General and administrative expenses 0 Total general and administrative expenses Total expenses 0 Prepare a single-step income statement that includes these expense categories: cost of general and administrative expenses. VALLEY COMPANY Income Statement For Year Ended August 31 Expenses Total expenses 0