Question

Chapter 04 Homework A Saved 14 Valley Company's adjusted trial balance on August 31, 2018, its fiscal year-end, follows Credit Debit $ 39,500 158,000 points $ 45,623 10,000 120,073 Skipped 8,000 270, 180 eBook 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 4,134 17,832 104,394 37,015 12,698 3,242 22,965 33,773 3,242 1,081 $445,876 Print References $445,876 On August 31, 2017, merchandise inventory was $31,877. Supplementary records of merchandising activities for the year ended August 31, 2018, reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $116,130 2,439 5,574 3,900 Required: 1. Compute the company's net sales for the year. 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. Complete this questions by entering your answers in the below tabs. Required 1 Required 2 Required 3 Required 4 Compute the company's net sales for the year. Net Sales Sales Net sales < Required 1 Required 2 >

Answer 1

Net Sales 1.) Sales $ 2,70,100 Less: Sales Discounts Less: Sales returns, and allowances $ Net Sales $ -4,134 -17,832 2,48,134

2.) Cost of Merchandise Purchased cost of merchandise purchased $1,16,130 $ -2,439 $ 5,574 $3,900 Less: Purchase discounts received Purchase returns and allowances Add: Costs of Transportation-in Total Cost of Merchandise Purchased $1,12,017

3.) VALLEY COMPANY Income Statement For Year Ended August 31, 2018 Sales 2,70,100 Less: Sales Discounts 4,134 17,832 $ Less: Sales returns, and allowances -21,966 $ Net Sales 2,48,134 Less: Cost of Goods Sold $ 1,04,394 Gross Margin 1,43,740 Expenses: Selling Expenses: Sales Salaries Expense 37,015 Rent Expense-Selling Space 12,698 $ Advertising Expense 22,965 Total Selling Expenses $ 72,678 General and Administrative Expenses: Store Supplies Expense 3,242 Office Salaries Expense 33,773 Rent Expense-Office Space Office Supplies Expense Total general and administrative expenses Total Expenses 3,242 $ 1,081 $ 41,338 1,14,016 29,724 Net Income

4.) VALLEY COMPANY Income Statement For Year Ended August 31, 2018 Net Sales 2,48,134 Expenses: $1,04,394 Cost of Goods Sold $72,678 Selling Expenses General and Administration Expenses 41,338 Total Expenses 2,18,410 Net Income $ 29,724