Question

HELP ME PLEASE !!!!!!!!

Problem 4-3A 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, and advertising expense. It categorizes the remaining expenses as general and administrative. Credit Debit $ 31,000 124,000 $ 35,805 41,729 62,912 8,000 212,040 Merchandise inventory (ending) 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 3,244 13,995 82,768 29,049 9,966 2,544 18,023 26,505 2,544 $352,436 $352, 486

Answer 1

A. Net Sales

Particulars	$
Sales	212040
less : Sales Discounts	3244
less : Sales Returns and Allowances	13995
Net Sales	194801

B. Cost of Merchandise Purchased

Particulars	91140
Invoice cost of Merchandise Purchased
less : Purchases Discount Received	1914
less : Purchases Returns and Allowances	4375
Add : Cost of Transportation in	3900
Total Cost of Merchandise Purchased	88751

C. Income Statement (Multiple Step)

194801 VALLEY COMPANY Income Statement For the Year Ended August 31 Particulars (A) Net Sales Less: Cost of Goods Sold Beginning Merchandise Inventory Add Cost of Merchandise Purchased less : Ending Merchandise Inventory (B) Cost of Goods Sold 25017 88751 31000 82768 [C] Gross Income (A-B) 112033 Expenses 29049 Selling Expenses Sales Salaries Expense Rent-Selling Space Store Supplies Expense Advertising Expense (D) Total Selling Expenses 9966 2544 18023 59582 General and Administrative Expenses Office Salaries Expenses Rent Expenses - Office Office Supplies Expense (E) Total General and Administrative Expenses 26505 2544 848 29897 Net Income [C] - (D+E) 22554

D .Income Statement (Single Step)

194801 VALLEY COMPANY Income Statement For the Year Ended August 31 Particulars (A) Net Sales Expenses Cost of Goods Sold Selling Expenses General and Administrative Expenses (B) TOTAL EXPENSES 82768 59582 29897 172247 Net Income (A-B) 22554