Use the following information for the Problems 3A 4A below (Algo) Skip to question 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) $ 38,000 Other (noninventory) assets 152,000 Total liabilities $ 43,890 Common stock 51,152 Retained earnings 74,433 Dividends 8,000 Sales 259,920 Sales discounts 3,977 Sales returns and allowances 17,155 Cost of goods sold 100,577 Sales salaries expense 35,609 Rent expenseSelling space 12,216 Store supplies expense 3,119 Advertising expense 22,093 Office salaries expense 32,490 Rent expenseOffice space 3,119 Office supplies expense 1,040 Totals $ 429,395 $ 429,395 Beginning merchandise inventory was $30,666 Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs Invoice cost of merchandise purchases $ 111,720 Purchases discounts received 2,346 Purchases returns and allowances 5,363 Costs of transportation in 3,900 rev 09 18 2019 QC CS 181259 Problem 4 3A (Algo) Computing merchandising amounts and formatting income statements LO C1, P4 Required 1 Compute the companys net sales for the year 2 Compute the companys 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 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

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 09, 2024

Use the following information for the Problems 3A-4A below. (Algo) Skip to question [The following information applies to the questions displayed below.] Valley Companys adjusted

Use the following information for the Problems 3A-4A below. (Algo)

Skip to question

[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)	$	38,000
Other (noninventory) assets		152,000
Total liabilities			$	43,890
Common stock				51,152
Retained earnings				74,433
Dividends		8,000
Sales				259,920
Sales discounts		3,977
Sales returns and allowances		17,155
Cost of goods sold		100,577
Sales salaries expense		35,609
Rent expenseSelling space		12,216
Store supplies expense		3,119
Advertising expense		22,093
Office salaries expense		32,490
Rent expenseOffice space		3,119
Office supplies expense		1,040
Totals	$	429,395	$	429,395

Beginning merchandise inventory was $30,666. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.


Invoice cost of merchandise purchases	$	111,720
Purchases discounts received		2,346
Purchases returns and allowances		5,363
Costs of transportation-in		3,900

rev: 09_18_2019_QC_CS-181259

Problem 4-3A (Algo) Computing merchandising amounts and formatting income statements LO C1, P4

Required:

1. Compute the companys net sales for the year. 2. Compute the companys 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.

image text in transcribed

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 >