Problem 5-3A Computing merchandising amounts and formatting income statements LO C2, P4

Valley Companys adjusted trial balance on August 31, 2017, its fiscal year-end, follows.

		Debit			Credit
Merchandise inventory		$	38,000
Other (noninventory) assets			152,000
Total liabilities					$	43,890
K. Valley, Capital						125,585
K. Valley, Withdrawals			8,000
Sales						259,920
Sales discounts			3,977
Sales returns and allowances			17,155
Cost of goods sold			100,577
Sales salaries expense			35,609
Rent expenseSelling space			12,216
Store supplies expense			3,119
Advertising expense			22,093
Office salaries expense			32,490
Rent expenseOffice space			3,119
Office supplies expense			1,040
Totals		$	429,395		$	429,395

On August 31, 2016, merchandise inventory was $30,666. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs.

Invoice cost of merchandise purchases	$	111,720
Purchases discounts received		2,346
Purchases returns and allowances		5,363
Costs of transportation-in		3,900

Required:

1. Compute the companys net sales for the year. 2. Compute the companys 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.

Complete this questions by entering your answers in the below tabs. Required 1 Required 3 Required 2 Required 4 Compute the company's net sales for the year. Net Sales Sales Net sales Required 2> Required 1 Complete this questions by entering your answers in the below tabs. Required 1 Required 3 Required 4 Required 2 Compute the company's total cost of mterctandise purchased for the year. Cost of merchandise purchased Invoice cost of merchandise purchased Purchase discounts received Purchase returns and allowances Costs of transportation-in Total cost of merchandise purchased Required 1 Required 3 Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Required 4 Required 3 Prepare a multiple-step income statement that begins with net sales and includes separate categories for: cost of goods sold, selling expenses, and general and administrative expenses. VALLEY COMPANY Income Statement For Year Ended August 31, 2017 Expense Selling expenses Total selling expenses General and administrative expenses Total general and administrative expenses Total expenses Required 4 > Required 2 Complete this questions by entering your answers in the below tabs 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, 2017 Expenses Total expenses Required 3 Required 4>