Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[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.

[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) $ 40,500
Other (non-inventory) assets 162,000
Total liabilities $ 46,778
K. Valley, Capital 133,065
K. Valley, Withdrawals 8,000
Sales 277,020
Sales discounts 4,238
Sales returns and allowances 18,283
Cost of goods sold 106,939
Sales salaries expense 37,952
Rent expenseSelling space 13,020
Store supplies expense 3,324
Advertising expense 23,547
Office salaries expense 34,628
Rent expenseOffice space 3,324
Office supplies expense 1,108
Totals $ 456,863 $ 456,863

Beginning merchandise inventory was $32,684. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.

Invoice cost of merchandise purchases $ 119,070
Purchases discounts received 2,500
Purchases returns and allowances 5,715
Costs of transportation-in 3,900

1. Record the entry to close the income statement accounts with credit balances

2. Record the entry to close the income statement accounts with debit balances

3. Record the entry to close the income summary

4. Record the entry to close the withdrawals account

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Artificial Intelligence In Accounting Organisational And Ethical Implications

Authors: Othmar M. Lehner, Carina Knoll

1st Edition

1032055626, 9781032055626

More Books

Students also viewed these Accounting questions

Question

Why is too much liquidity not a good thing?

Answered: 1 week ago