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