Question
Valley Companys adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expenseselling
Valley Companys adjusted trial balance 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.
Debit | Credit | ||||||
Merchandise inventory (ending) | $ | 43,000 | |||||
Other (noninventory) assets | 65,150 | ||||||
Total liabilities | $ | 25,400 | |||||
Common stock | 17,360 | ||||||
Retained earnings | 21,700 | ||||||
Dividends | 8,500 | ||||||
Sales | 225,700 | ||||||
Sales discounts | 2,260 | ||||||
Sales returns and allowances | 12,000 | ||||||
Cost of goods sold | 72,100 | ||||||
Sales salaries expense | 31,100 | ||||||
Rent expenseSelling space | 9,000 | ||||||
Store supplies expense | 1,700 | ||||||
Advertising expense | 13,500 | ||||||
Office salaries expense | 28,200 | ||||||
Rent expenseOffice space | 3,300 | ||||||
Office supplies expense | 350 | ||||||
Totals | $ | 290,160 | $ | 290,160 | |||
|
Beginning merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.
Invoice cost of merchandise purchases | $ | 91,900 |
Purchases discounts received | 2,300 | |
Purchases returns and allowances | 4,500 | |
Costs of transportation-in | 4,600 | |
|
Required: Prepare closing entries as of August 31 (the perpetual inventory system is used).
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