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Valley Company s adjusted account balances from its general ledger on August 3 1 , its fiscal year - end, follows. It categorizes the following
Valley Companys adjusted account balances from its general ledger on August its fiscal yearend, 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 $ Other noninventory assets Total liabilities $ Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expenseSelling space Store supplies expense Advertising expense Office salaries expense Rent expenseOffice space Office supplies expense Totals $ $ Beginning merchandise inventory was $ Supplementary records of merchandising activities for the year ended August reveal the following itemized costs. Invoice cost of merchandise purchases $ Purchases discounts received Purchases returns and allowances Costs of transportationin Required: Compute the companys net sales for the year. Compute the companys total cost of merchandise purchased for the year. Prepare a multiplestep income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Prepare a singlestep income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.
Valley Companys adjusted account balances from its general ledger on August its fiscal yearend, 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 $
Other noninventory assets
Total liabilities $
Common stock
Retained earnings
Dividends
Sales
Sales discounts
Sales returns and allowances
Cost of goods sold
Sales salaries expense
Rent expenseSelling space
Store supplies expense
Advertising expense
Office salaries expense
Rent expenseOffice space
Office supplies expense
Totals $ $
Beginning merchandise inventory was $ Supplementary records of merchandising activities for the year ended August reveal the following itemized costs.
Invoice cost of merchandise purchases $
Purchases discounts received
Purchases returns and allowances
Costs of transportationin
Required:
Compute the companys net sales for the year.
Compute the companys total cost of merchandise purchased for the year.
Prepare a multiplestep income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.
Prepare a singlestep income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.
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