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Valley Company's adjusted account balances from its general ledger on August 3 I, its fiscal year - end, follows. It categorizes the following accounts as

Valley Company's adjusted account balances from its general ledger on August 3I, 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.
\table[[\table[[Adjusted],[Account],[Balances]],Debit,Credit,],[\table[[Merchandise],[inventory],[(ending)]],$41,000,,],[\table[[Other],[(noninventory)],[assets]],130,400,,\table[[Beginning merchandise inventory was $25,400.],[Supplementary records of merchandising activities for],[the year ended August 3I reveal the following itemized],[costs.]]],[Total liabilities,,$25,000,],[Common stock,,10,000,Invoice cost of],[\table[[Retained],[earnings]],,94,550,\table[[merchandise],[purchases]]],[Dividends,8,000,,Purchases discounts],[Sales,,225,600,received],[\table[[Sales],[discounts]],2,250,,\table[[Purchases returns and],[allowances]]],[\table[[Sales returns],[and],[allowances]],12,000,,\table[[Costs of],[transportation-in]]],[\table[[Cost of goods],[sold]],74,500,,\table[[Required],[I. Compute the company's net sales for the year.]]],[\table[[Sales salaries],[expense]],32,000,,],[\table[[Rent expense],[-Selling],[space]],8,000,,\table[[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.]]],[\table[[Store supplies],[expense]],1,500,,\table[[4. Prepare a single-step income statement that includes],[these expense categories: cost of goods sold, selling],[expenses, and general and administrative expenses.]]],[\table[[Advertising],[expense]],13,000,,],[\table[[Office salaries],[expense]],28,500,,],[\table[[Rent expense],[-Office space]],3,600,,],[\table[[Office supplies],[expense]],400,,],[Totals,$355,150,50,]]
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