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Valley Companys adjusted trial balance on August 31, 2015, its fiscal year-end, follows.

			Debit			Credit
Merchandise inventory		$	40,500
Other (noninventory) assets			162,000
Total liabilities					$	46,778
Common stock						54,518
Retained earnings						78,547
Dividends			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

On August 31, 2014, merchandise inventory was $32,684. Supplementary records of merchandising activities for the year ended August 31, 2015, reveal the following itemized costs.

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

References

Section BreakProblem 4-3A Computing merchandising amounts and formatting income statements LO C2, P4

6.

value: 8.35 points

Required information

Problem 4-3A Part 3

3.	Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses.