WOOL ! Required information [The following information applies to the questions displayed below) Valley Company's 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 expense-selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative. Adjusted Account Balances Debit Credit Merchandise inventory (ending) $ 32,000 Other (non-inventory) assets 128,000 Total liabilities $ 36,960 Common stock 64,560 Retained earnings 43,076 Dividends 8,888 Sales 218,880 Sales discounts 3,349 Sales returns and allowances 14,446 Cost of goods sold 85,312 Sales salaries expense 29,987 Rent expense-selling space 10,287 Store supplies expense 2,627 Advertising expense 18,605 Office salaries expense 27,360 Rent expense-office space 2,627 Office supplies expense 876 Totals $363,476 $ 363,476 Beginning merchandise inventory was $25,824. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs Invoice cost of merchandise purchases Purchases discounts received OF an - $ 94,080 1,976 1 Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $ 94,80 1.976 4,516 3,900 Required: 1. Compute the company's net soles for the year 2. Compute the company's 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. Purchases discounts received Purchases returns and allowances Costs of transportation in 1,976 4,516 3,900 Required: 1. Compute the company's net sales for the year 2. Compute the company's 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 6 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the company's net sales for the year. Net Sales Sales Less: Sales discounts Less: Sales retums and allowances Net sales Red Required 2 > CH 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 question by entering your answers in the tabs below. Required 3 Required 1 Required 2 Required 4 Compute the company's total cost of merchandise purchased for the year Cost of Merchandise Purchased Invoice cost of merchandise purchased Purchases discounts received Purchases returns and allowances Costs of transportation in Total cost of merchandise purchased VALLEY COMPANY Income Statement For Year Ended August 31 Sales Less: Sales discounts Less: Sales returns and allowances O 0 0 Expenses Selling expenses Total selling expenses General and administrative expenses 0 Total general and administrative expenses Required information 0 Total selling expenses General and administrative expenses 0 Total general and administrative expenses Total expenses 0 er 4 Homework He Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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 Expenses Total expenses 0
