Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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) | $ 31,500 | |
Other (non-inventory) assets | 126,000 | |
Total liabilities | $ 36,383 | |
Common stock | 63,738 | |
Retained earnings | 42,403 | |
Dividends | 8,000 | |
Sales | 215,460 | |
Sales discounts | 3,297 | |
Sales returns and allowances | 14,220 | |
Cost of goods sold | 84,041 | |
Sales salaries expense | 29,518 | |
Rent expenseSelling space | 10,127 | |
Store supplies expense | 2,586 | |
Advertising expense | 18,314 | |
Office salaries expense | 26,933 | |
Rent expenseOffice space | 2,586 | |
Office supplies expense | 862 | |
Totals | $ 357,984 | $ 357,984 |
Beginning merchandise inventory was $25,421. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.
Invoice cost of merchandise purchases | $ 92,610 |
---|---|
Purchases discounts received | 1,945 |
Purchases returns and allowances | 4,445 |
Costs of transportation-in | 3,900 |
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