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Valley Companys adjusted trial balance on August 31, 2017, its fiscal year-end, follows. Debit Credit Merchandise inventory $ 41,000 Other (noninventory) assets 130,400 Total liabilities

Valley Companys adjusted trial balance on August 31, 2017, its fiscal year-end, follows.

Debit Credit
Merchandise inventory $ 41,000
Other (noninventory) assets 130,400
Total liabilities $ 25,000
Common stock 10,000
Retained earnings 94,550
Dividends 8,000
Sales 225,600
Sales discounts 2,250
Sales returns and allowances 12,000
Cost of goods sold 74,500
Sales salaries expense 32,000
Rent expenseSelling space 8,000
Store supplies expense 1,500
Advertising expense 13,000
Office salaries expense 28,500
Rent expenseOffice space 3,600
Office supplies expense 400
Totals $ 355,150 $ 355,150

On August 31, 2016, merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs.

Invoice cost of merchandise purchases $ 92,000
Purchases discounts received 2,000
Purchases returns and allowances 4,500
Costs of transportation-in 4,600

Required:

2. Compute the companys 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.

Compute the companys total cost of merchandise purchased for the year.

Cost of merchandise purchased
Invoice cost of merchandise purchased
Purchase discounts received
Purchase returns and allowances
Costs of transportation-in
Total cost of merchandise purchased

Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.

VALLEY COMPANY
Income Statement
For Year Ended August 31, 2017
0
0
0
Expense
Selling expenses
Total selling expenses 0
General and administrative expenses
Total general and administrative expenses 0
Total expenses 0

Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.

VALLEY COMPANY
Income Statement
For Year Ended August 31, 2017
Expenses
Total expenses 0

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