Valley Company’s adjusted trial balance on August 31, 2017, its fiscal year-end,
ID: 2437252 • Letter: V
Question
Valley Company’s adjusted trial balance on August 31, 2017, its fiscal year-end, follows.
On August 31, 2016, merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs.
Required:
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.
Compute the company’s total cost of merchandise purchased for the year.
Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.
Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.
Debit Credit Merchandise inventory $ 41,000 Other (noninventory) assets 130,400 Total liabilities $ 25,000 Common stock 10,000 Retained earnings 94,550 Dividends 8,000 Sales 225,600 Sales discounts 2,250 Sales returns 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 13,000 Office salaries expense 28,500 Rent expense—Office space 3,600 Office supplies expense 400 Totals $ 355,150 $ 355,150Explanation / Answer
Solution 2:
Solution 3:
Solution 4:
Cost of merchandise purchased Particulars Amount Invoice cost of merchandise purchased $92,000.00 Purchase discounts received -$2,000.00 Purchase returns and allowances -$4,500.00 Costs of transportation-in $4,600.00 Total cost of merchandise purchased $90,100.00Related Questions
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