Question
Required information Skip to question [The following information applies to the questions displayed below.] Valley Companys adjusted account balances from its general ledger on August
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[The following information applies to the questions displayed below.]
Valley Companys adjusted account balances from its general ledger on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expenseselling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.
Adjusted Account Balances | Debit | Credit |
---|---|---|
Merchandise inventory (ending) | $ 41,000 | |
Other (non-inventory) assets | 164,000 | |
Total liabilities | $ 47,355 | |
Common stock | 79,369 | |
Retained earnings | 55,191 | |
Dividends | 8,000 | |
Sales | 280,440 | |
Sales discounts | 4,291 | |
Sales returns and allowances | 18,509 | |
Cost of goods sold | 108,210 | |
Sales salaries expense | 38,420 | |
Rent expenseSelling space | 13,181 | |
Store supplies expense | 3,365 | |
Advertising expense | 23,837 | |
Office salaries expense | 35,055 | |
Rent expenseOffice space | 3,365 | |
Office supplies expense | 1,122 | |
Totals | $ 462,355 | $ 462,355 |
Beginning merchandise inventory was $33,087. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.
Invoice cost of merchandise purchases | $ 120,540 |
---|---|
Purchases discounts received | 2,531 |
Purchases returns and allowances | 5,786 |
Costs of transportation-in | 3,900 |
Required:
- Compute the companys net sales for the year.
- Compute the companys 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.
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