Question
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
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 (non-inventory) assets | 152,000 | |
Total liabilities | $ 43,890 | |
Common stock | 74,433 | |
Retained earnings | 51,152 | |
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 |
Required: Prepare closing entries as of August 31 (the perpetual inventory system is used).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started