Problem 4-4A Preparing closing entries and interpreting information about discounts and returns LO C2, P3
Valley Company’s adjusted trial balance on August 31, 2018, its fiscal year-end, follows.
Debit | Credit | ||||||
Merchandise inventory | $ | 39,700 | |||||
Other (noninventory) assets | 59,880 | ||||||
Total liabilities | $ | 24,400 | |||||
Common stock | 16,240 | ||||||
Retained earnings | 20,300 | ||||||
Dividends | 8,300 | ||||||
Sales | 226,800 | ||||||
Sales discounts | 2,260 | ||||||
Sales returns and allowances | 12,000 | ||||||
Cost of goods sold | 76,700 | ||||||
Sales salaries expense | 32,100 | ||||||
Rent expense—Selling space | 8,300 | ||||||
Store supplies expense | 1,800 | ||||||
Advertising expense | 14,000 | ||||||
Office salaries expense | 28,800 | ||||||
Rent expense—Office space | 3,500 | ||||||
Office supplies expense | 400 | ||||||
Totals | $ | 287,740 | $ | 287,740 | |||
On August 31, 2017, merchandise inventory was $25,800.
Supplementary records of merchandising activities for the year
ended August 31, 2018, reveal the following itemized costs.
Invoice cost of merchandise purchases | $ | 92,900 |
Purchases discounts received | 2,700 | |
Purchases returns and allowances | 4,400 | |
Costs of transportation-in | 4,800 | |
Required:
1. Prepare closing entries as of August 31, 2018 (the perpetual inventory system is used).
Date | General Journal | Debit | Credit |
Aug-31 | Sales | 226,800 | |
Income summary | 226,800 | ||
Aug-31 | Income summary | 179,860 | |
Sales discounts | 2,260 | ||
Sales returns and allowances | 12,000 | ||
Cost of goods sold | 76,700 | ||
Sales salaries expense | 32,100 | ||
Rent expense—Selling space | 8,300 | ||
Store supplies expense | 1,800 | ||
Advertising expense | 14,000 | ||
Office salaries expense | 28,800 | ||
Rent expense—Office space | 3,500 | ||
Office supplies expense | 400 | ||
Aug-31 | Income summary | 46,940 | |
Retained earnings | 47,900 | ||
Aug-31 | Retained earnings | 8,300 | |
Dividends | 8,300 |
Problem 4-4A Preparing closing entries and interpreting information about discounts and returns LO C2, P3 Valley...
Problem 4-4A Preparing closing entries and interpreting information about discounts and returns LO C2, P3 Valley Company's adjusted trial balance on August 31, 2018, its fiscal year-end, follows Credit Debit $ 41,000 61,650 $ 25, 100 16,000 20,000 8,400 225,600 Merchandise Inventory Other (noninventory) assets Total ilabilities Common stock Retained earnings Dividende Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries expense Rent expense-Selling space Store supplies expense Advertising expense Otice salaries expense Rent expense-office space...
HELP PLEASE !!!! Problem 4-4A Preparing closing entries and interpreting information about discounts and returns LO C2, P3 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 Debit $ 41,400 59,270 $ 24,800 16,400 20,500 8,400 226,400 Merchandise inventory (ending) Other (noninventory) assets Total liabilities Common stock...
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 Credit Merchandise inventory (ending) $ 43,000 Other (noninventory) assets 65,150 Total liabilities $ 25,400 Common stock 17,360 Retained earnings 21,700 Dividends 8,500 Sales 225,700 Sales discounts 2,260 Sales returns and allowances 12,000 Cost of goods sold 72,100 Sales...
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 Credit Merchandise inventory (ending) $ 43,000 Other (noninventory) assets 65,150 Total liabilities $ 25,400 Common stock 17,360 Retained earnings 21,700 Dividends 8,500 Sales 225,700 Sales discounts 2,260 Sales returns and allowances 12,000 Cost of goods sold 72,100 Sales...
Problem 4-3A Computing merchandising amounts and formatting income statements LO C2, P4 Valley Company’s adjusted trial balance on August 31, 2018, its fiscal year-end, follows. Debit Credit Merchandise inventory $ 43,500 Other (noninventory) assets 174,000 Total liabilities $ 50,243 Common stock 10,000 Retained earnings 132,038 Dividends 8,000 Sales 297,540 Sales discounts 4,552 Sales returns and allowances 19,638 Cost of goods sold 114,570 Sales salaries expense 40,763 Rent expense—Selling space 13,984 Store supplies expense 3,570 Advertising expense 25,291 Office salaries expense...
Problem 4-3A Computing merchandising amounts and formatting income statements LO C2, P4 Valley Company's adjusted trial balance on August 31, 2018, Its fiscal year-end, follows. Credit $ Debit 32,000 128,000 $ 36,960 10,000 97,636 8,000 218,880 Merchandise inventory Other (noninventory) assets Total llabuities Common stock Retained earnings Dividends Sales 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 Totals...
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 Credit Merchandise inventory (ending) $ 40,700 Other (noninventory) assets 61,340 Total liabilities $ 26,000 Common stock 15,440 Retained earnings 19,300 Dividends 8,400 Sales 226,000 Sales discounts 2,300 Sales returns and allowances 12,500 Cost of goods sold 74,300 Sales...
Award: 5.00 points Problem 5-3A Computing merchandising amounts and formatting income statements LO C2, P4 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, advertising expense. It categorizes the remaining expenses as general and administrative. Credit Debit $ 34,500 138,000 $39.84R 115,114 8,000 235,980 Merchandise inventory (ending) Other (noninventory) assets Total liabilities K. Valley, Capital K. Valley, Withdrawals Sales Sales...
Hello? How did this person get the '174,400' for the second income summary? Valley Company's adjusted trial balance on August 31, 2017, its fiscal year-end, follows Credit Debit 42000 | $ 61.920 25.600 Merchandise inventory Other (noninventory) assets Total abilities Common stock Retained earnings Dividends Sales Sales discounts 31300 8.700 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 12000 29,200...
Valley Company’s adjusted trial balance on August 31, 2018, its fiscal year-end, follows. Debit Credit Merchandise inventory $ 36,500 Other (noninventory) assets 146,000 Total liabilities $ 42,158 Common stock 10,000 Retained earnings 111,098 Dividends 8,000 Sales 249,660 Sales discounts 3,820 Sales returns and allowances 16,478 Cost of goods sold 96,761 Sales salaries expense 34,203 Rent expense—Selling space 11,734 Store supplies expense 2,996 Advertising expense 21,221 Office salaries expense 31,208 Rent expense—Office space 2,996 Office supplies expense 999 Totals $ 412,916...