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Merchandising Operations 4.

Required information [The following information applies to the questions displayed below.] Valley Company's adjusted account balances from its general ledger 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. Beginning merchandise inventory was $31,877. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). GENERAL JOURNAL OPTIONS Advertising expense Cost of goods sold Dividends Income summary Merchandise inventory Miscellaneous expenses Office salaries expense Office supplies expense Other (non-inventory) assets Rent expense-Office space Rent expense-Selling space Retained Earnings Sales Sales discounts Sales returns and allowances Sales salaries expense Store supplies expense Total liabilities Journal entry worksheet Record the entry to close the income statement accounts with credit balances. Note: Enter debits before credits. Record the entry to close the income statement accounts with debit balances. Note: Enter debits before credits. Journal entry worksheet 1 Record the entry to close income summary. Note: Enter debits before credits. Journal entry worksheet Record the entry to close the Dividends account. Note: Enter debits before credits

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