Debit $ 31,500 126,000 Valley Company's adjusted account balances from its general ledger on August 31,...

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Debit $ 31,500 126,000 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 Merchandise inventory (ending) Other (non-inventory) assets Total liabilities Common stock Retained earnings Credit $ 36,383 63,738 42,403 Dividends 8,000 Sales 215,460 Sales discounts 3,297 Sales returns and allowances 14,220 Cost of goods sold 84,041 Sales salaries expense 29,518 Rent expense-Selling space 10,127 Store supplies expense 2,586 Advertising expense 18,314 26,933 2,586 862 $ 357,984 Office salaries expense Rent expense-Office space Office supplies expense Totals Beginning merchandise inventory was $25,421. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $ 92,619 1,945 4,445 3,900 $ 357,984 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. Debit $ 31,500 126,000 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 Merchandise inventory (ending) Other (non-inventory) assets Total liabilities Common stock Retained earnings Credit $ 36,383 63,738 42,403 Dividends 8,000 Sales 215,460 Sales discounts 3,297 Sales returns and allowances 14,220 Cost of goods sold 84,041 Sales salaries expense 29,518 Rent expense-Selling space 10,127 Store supplies expense 2,586 Advertising expense 18,314 26,933 2,586 862 $ 357,984 Office salaries expense Rent expense-Office space Office supplies expense Totals Beginning merchandise inventory was $25,421. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $ 92,619 1,945 4,445 3,900 $ 357,984 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.

Answer rating: 100% (QA)

1 Compute the companys net sales for the year Net Sales Sales Sales Discounts Sales Returns and Allo... View the full answer