Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following...

 

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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. Debit $ 42,900 63,570 Credit Merchandise inventory (ending) Other (noninventory) assets Total liabilities $ 25,400 17,280 21,600 Common stock Retained earnings Dividends 8,600 Sales 225,800 2,260 12,000 71,600 32,300 8,900 1,700 13,000 29,200 3,700 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 350 Totals $290,080 $290,080 Beginning merchandise inventory was $25,900. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received $91,500 2,900 4,900 4,900 Purchases returns and allowances Costs of transportation-in Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). View transaction list Journal entry worksheet 2 3 4 > Record the entry to close the income statement accounts with credit balances. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31 Record entry Clear entry View general journal 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. Debit $ 42,900 63,570 Credit Merchandise inventory (ending) Other (noninventory) assets Total liabilities $ 25,400 17,280 21,600 Common stock Retained earnings Dividends 8,600 Sales 225,800 2,260 12,000 71,600 32,300 8,900 1,700 13,000 29,200 3,700 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 350 Totals $290,080 $290,080 Beginning merchandise inventory was $25,900. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received $91,500 2,900 4,900 4,900 Purchases returns and allowances Costs of transportation-in Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). View transaction list Journal entry worksheet 2 3 4 > Record the entry to close the income statement accounts with credit balances. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31 Record entry Clear entry View general journal

Answer rating: 100% (QA)

Solution Closing Entries Date Accounts Titles and Explanations Debit Credit Aug 31 Sales 225700 ... View the full answer