[The following information applies to the questions
displayed below.]
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 | $ | 429,395 | |||
On August 31, 2015, merchandise inventory was $30,666. Supplementary records of merchandising activities for the year ended August 31, 2016, reveal the following itemized costs.
Invoice cost of merchandise purchases | $ | 111,720 |
Purchase discounts received | 2,346 | |
Purchase returns and allowances | 5,363 | |
Costs of transportation-in | 3,900 | |
|
Required:
1. Compute the company’s net sales for the year.
. Compute the company’s total cost of merchandise purchased for the year.
Income Statement | ||
For Year Ended August 31, 2016 | ||
Sales | $259,920 | |
Less: Sales discounts | $3,977 | |
Less: Sales returns and allowances | 17,155 | 21,132 |
Net sales | 238,788 | |
Gross loss | 238,788 | |
Expense | ||
Selling expenses | ||
Cost of goods sold | ||
Merchandise inventory | 30,666 | |
Cost of goods sold | 111,720 | |
Total selling expenses | 142,386 | |
General and administrative expenses | ||
Total general and administrative expenses | 0 | |
Total expenses | 142,386 | |
Answer : Computation of Company’s net sales for the year
Amount ($) | |
---|---|
Sales | 259,920 |
Less: Sales discounts | (3,977) |
Less: Sales returns and allowances | (17,155) |
Net sales | $238,788 |
Computation of Company’s total cost of merchandise purchased for the year
Amount ($) | |
---|---|
Invoice cost of merchandise purchases | 111,720 |
Add : Costs of transportation-in | 3,900 |
Less : Purchase discounts received | (2,346) |
Less : Purchase returns and allowances | (5,363) |
Cost of merchandise purchased | $107,911 |
[The following information applies to the questions displayed below.] Valley Company’s adjusted trial balance on August...
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, 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, 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...
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. Debit Credit Merchandise inventory (ending) $ 33,000 Other (noninventory) assets 132,000 Total liabilities $ 38,115 K. Valley, Capital 110,629 K. Valley, Withdrawals 8,000 Sales 225,720 Sales discounts 3,454 Sales returns and allowances 14,898 Cost of goods sold 87,857 Sales salaries...
This is all one question. Just requires information. 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) $ 35,500 Other (noninventory) assets 142,000 Total liabilities $ 41,003 Common stock 47,787 Retained earnings 70,319 Dividends 8,000 Sales 242,820 Sales discounts 3,715 Sales returns and...
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. 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...
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, 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...