Valley Company?s adjusted trial balance on August 31, 2018, its fiscal year-end, follows. On August 31, 2017,
Question:
Valley Company?s adjusted trial balance on August 31, 2018, its fiscal year-end, follows.
On August 31, 2017, merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31, 2018, reveal the following itemized costs.
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 Credit $ 41,000 Merchandise inventory 130,400 Other (noninventory) assets Total liabilities... Common stock..... Retained eamings... $ 25,000 10,000 94,550 Dividends .. 8,000 Sales ... 225,600 Sales discounts... 2,250 Sales retums and allowances 12,000 Cost of goods sold.... 74,500 Sales salaries expense.. 32,000 Rent expense-Selling space. 8,000 Store supplies expense . 1,500 Advertising expense.. Office salaries expense. 13,000 28,500 Rent expense-Office space Office supplies expense.. 3,600 400 $355,150 $355.150 Totals.... Invoice cost of merchandise purchases . Purchases discounts received..... Purchases returns and allowances. Costs of transportation-in.... $92,000 2,000 4,500 4,600
Step by Step Answer:
1 Net sales Sales 225600 Less Sales discounts 2250 Sales returns and allowances 12000 Net sales 2113...View the full answer
Financial Accounting Information for Decisions
ISBN: 978-1259917042
9th edition
Authors: John J. Wild
Related Video
A trial balance is a list of all the general ledger accounts contained in the ledger of a business. This list will contain the name of each nominal ledger account and the value of that nominal ledger balance. Each nominal ledger account will hold either a debit balance or a credit balance
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