Valley Company's 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 Expense- Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative. Adjusted Account Balances 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 expense-Selling space. Store supplies expense Advertising expense.. Office salaries expense Rent expense-Office space Office supplies expense. Totals.. Invoice cost of merchandise purchases Purchases discounts received.. Debit $92,000 2,000 $ 41,000 130,400 8,000 2,250 12,000 74,500 32,000 8,000 1,500 13,000 28,500 3,600 400 $355,150 Credit $ 25,000 10,000 94,550 225,600 $355,150 Beginning merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Purchases returns and allowances Costs of transportation-in.. Problem 4-3A Computing merchandising amounts and formatting income statements C1 P4 $4,500 4,600 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, sell- ing expenses, and general and administrative expenses. Check (2) $90,100 (3) Gross profit, $136,850; Net income, $49,850 (4) Total expenses, $161,500

Valley Company's 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. Problem 4-3A Computing merchandising amounts and formetting income statements C1 P4 eginning merchandise inventory was $25,400, Supplementary records of merchandising activities for the ar ended August 31 reveal the following itemized costs. 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. Check (2) $90,100 (3) Gross profi, $136,850, Net income $49,850 4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling experises, and general and administrative expenses. (4) Totai expenses, $161,500 Valley Company's adjusted account balances from its general ledger On August 1 , is follows. It categorizes the following accounts as selling expenses: Sales Salaries Expense, Rent ExpenseComputing merchandising Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as amounts and formatting income statements general and administrative. C1 1 P4 Beginning merchandise inventory was $25,400. Supplementary records of merchandising activities for the vear ended August 31 reveal the following itemized costs. 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. Check (2) $90,100 (3) Gross profit, $136,850, Net income, $49,850 (4) Total expenses, $161,500