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

		Debit			Credit
Merchandise inventory		$	33,000
Other (noninventory) assets			132,000
Total liabilities					$	38,115
K. Valley, Capital						110,629
K. Valley, Withdrawals			8,000
Sales						225,720
Sales discounts			3,454
Sales returns and allowances			14,898
Cost of goods sold			87,857
Sales salaries expense			30,924
Rent expenseSelling space			10,609
Store supplies expense			2,709
Advertising expense			19,186
Office salaries expense			28,215
Rent expenseOffice space			2,709
Office supplies expense			903
Totals		$	374,464		$	374,464

On August 31, 2016, merchandise inventory was $26,631. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs.

Invoice cost of merchandise purchases	$	97,020
Purchases discounts received		2,037
Purchases returns and allowances		4,657
Costs of transportation-in		3,900

Required:

1. Compute the companys net sales for the year. 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.

Complete this questions by entering your answers in the below tabs.

Required 1

Compute the companys net sales for the year.

Net Sales
Sales
Net sales

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 begins with net sales and includes separate categories for: cost of goods sold, selling expenses, and general and administrative expenses.

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

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