Question: Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.

3 Valley Company's adjusted trial balance 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. credit 5 points $ 51,398 59,902 85,131 304,380 Debit Merchandise Inventory (ending) $ 44,500 Other (noninventory) Assets 170,000 Total lisbilities Common stock Retained earnings Dividende 8.000 Sales Salon discount 4.657 Salon returns and allowances 20,089 Cost of goods sold 117,113 Sales salaries expense 41,700 Hent expense-Selling space 14,306 Store supplies expense 3,652 Advertising op 25,872 office salarion expense 38,00 Tant expense-office space 3.653 office supplier expense 1.210 Totale $500,011 5500,811 Beginning merchandise inventory was $35,912, Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs Invoice cost of merchandise purchases Purchases discounts received Purchase return and allowance Coats of transportation in $130,030 2.747 6,200 3,900