Valley Company’s adjusted trial balance on August 31, 2017, its
fiscal year-end, follows.
Debit | Credit | ||||||
Merchandise inventory | $ | 44,500 | |||||
Other (noninventory) assets | 178,000 | ||||||
Total liabilities | $ | 51,398 | |||||
Common stock | 10,000 | ||||||
Retained earnings |
135,033 |
||||||
Dividends | 8,000 | ||||||
Sales | 304,380 | ||||||
Sales discounts | 4,657 | ||||||
Sales returns and allowances | 20,089 | ||||||
Cost of goods sold | 117,115 | ||||||
Sales salaries expense | 41,700 | ||||||
Rent expense—Selling space | 14,306 | ||||||
Store supplies expense | 3,653 | ||||||
Advertising expense | 25,872 | ||||||
Office salaries expense | 38,048 | ||||||
Rent expense—Office space | 3,653 | ||||||
Office supplies expense | 1,218 | ||||||
Totals | $ | 500,811 | $ | 500,811 | |||
On August 31, 2016, merchandise inventory was $35,912.
Supplementary records of merchandising activities for the year
ended August 31, 2017, reveal the following itemized
costs.
Invoice cost of merchandise purchases | $ | 130,830 |
Purchases discounts received | 2,747 | |
Purchases returns and allowances | 6,280 | |
Costs of transportation-in | 3,900 | |
Required:
1. Compute the company’s net sales for the
year.
2. Prepare a multiple-step income statement that
includes separate categories for net sales, cost of goods sold,
selling expenses, and general and administrative expenses.
Valley Company’s adjusted trial balance on August 31, 2017, its fiscal year-end, follows. Debit Credit Merchandise...
Valley Company’s adjusted trial balance on August 31, 2017, its fiscal year-end, follows. Debit Credit Merchandise inventory $ 45,000 Other (noninventory) assets 180,000 Total liabilities $ 51,975 Common stock 10,000 Retained earnings 136,529 Dividends 8,000 Sales 307,800 Sales discounts 4,709 Sales returns and allowances 20,315 Cost of goods sold 118,387 Sales salaries expense 42,169 Rent expense—Selling space 14,467 Store supplies expense 3,694 Advertising expense 26,163 Office salaries expense 38,475 Rent expense—Office space 3,694 Office supplies expense 1,231 Totals $ 506,304...
Valley Company’s adjusted trial balance on August 31, 2017, its fiscal year-end, follows. Debit Credit Merchandise inventory $ 34,500 Other (noninventory) assets 138,000 Total liabilities $ 39,848 Common stock 10,000 Retained earnings 105,114 Dividends 8,000 Sales 235,980 Sales discounts 3,610 Sales returns and allowances 15,575 Cost of goods sold 91,673 Sales salaries expense 32,329 Rent expense—Selling space 11,091 Store supplies expense 2,832 Advertising expense 20,058 Office salaries expense 29,498 Rent expense—Office space 2,832 Office supplies expense 944 Totals $ 390,942...
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...
Valley Company's adjusted trial balance on August 31, 2017, its fiscal year-end, follows. Credit Debit $ 42.500 170,000 $ 49,088 10,000 129,048 8,000 290, 700 Merchandise inventory Other (noninventory) assets Total liabilities 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 4,448 19,186 112,026 39,826 13,663 3,488 24, 710 36, 338 3,488...
Valley Company’s adjusted trial balance on August 31, 2016, its fiscal year-end, follows. Debit Credit Merchandise inventory $ 38,000 Other (noninventory) assets 152,000 Total liabilities $ 43,890 Common stock 51,152 Retained earnings 74,433 Dividends 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 expense—Selling space 12,216 Store supplies expense 3,119 Advertising expense 22,093 Office salaries expense 32,490 Rent expense—Office space 3,119 Office supplies expense 1,040 Totals $ 429,395...
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...
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...
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) $ 45,000 Other (noninventory) assets 180,000 Total liabilities $ 51,975 Common stock 60,575 Retained earnings 85,954 Dividends 8,000 Sales 307,800 Sales discounts 4,709 Sales returns and allowances 20,315 Cost of goods sold 118,387 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) $ 42,500 Other (noninventory) assets 170,000 Total liabilities $ 49,088 Common stock 57,210 Retained earnings 81,838 Dividends 8,000 Sales 290,700 Sales discounts 4,448 Sales returns and allowances 19,186 Cost of goods sold 112,026 Sales...