Valley Company's adjusted account balances from its general ledger on August 31, its fiscal year-end, follows....
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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 K. Valley, Capital K. Valley, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Office salaries expense Rent expense-Office space. Office supplies expense Totals Debit $ 33,000 132,000 Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in 8,000 3,454 14,898 87,857 30,924 10,609 2,709 19, 186 Credit $ 38,115 110,629 225,720 28,215 2,709 903 $ 374,464 $ 374,464 Beginning merchandise inventory was $26,631. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. $ 97,020 2,037 4,657 3,900 Required: Prepare closing entries as of August 31 (the perpetual inventory system is used) View transaction list 1 Record the entry to close the income statement accounts with credit balances. 2 Record the entry to close the income statement accounts with debit balances. 3 لیا 4 Record the entry to close income summary. Record the entry to close the Withdrawals account. www X www alances Credit 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 K. Valley, Capital K. Valley, Withdrawals Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Office salaries expense Rent expense-Office space. Office supplies expense Totals Debit $ 33,000 132,000 Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in 8,000 3,454 14,898 87,857 30,924 10,609 2,709 19, 186 Credit $ 38,115 110,629 225,720 28,215 2,709 903 $ 374,464 $ 374,464 Beginning merchandise inventory was $26,631. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. $ 97,020 2,037 4,657 3,900 Required: Prepare closing entries as of August 31 (the perpetual inventory system is used) View transaction list 1 Record the entry to close the income statement accounts with credit balances. 2 Record the entry to close the income statement accounts with debit balances. 3 لیا 4 Record the entry to close income summary. Record the entry to close the Withdrawals account. www X www alances Credit
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To prepare the closing entries for Valley Company as of August 31 we need to close the income statem... View the full answer
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