60.1K

Verified Solution

Link Copied!

Valley Company's adjusted account balances from its general ledger on August $3$I, 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.

$\backslash$table$[[\backslash$table$[[$Adjusted$],[$Account$],[$Balances$]],$Debit,Credit,$],[\backslash$table$[[$Merchandise$],[$inventory$],[($ending$)]],$$$41,000,,],[\backslash$table$[[$Other$],[($noninventory$)],[$assets$]],130,400,,\backslash$table$[[$Beginning merchandise inventory was $$25,400.],[$Supplementary records of merchandising activities for$],[$the year ended August $3$I reveal the following itemized$],[$costs$.]]],[$Total liabilities,,$$25,000,],[$Common stock,,$10,000,$Invoice cost of$],[\backslash$table$[[$Retained$],[$earnings$]],,94,550,\backslash$table$[[$merchandise$],[$purchases$]]],[$Dividends$,8,000,,$Purchases discounts$],[$Sales$,,225,600,$received$],[\backslash$table$[[$Sales$],[$discounts$]],2,250,,\backslash$table$[[$Purchases returns and$],[$allowances$]]],[\backslash$table$[[$Sales returns$],[$and$],[$allowances$]],12,000,,\backslash$table$[[$Costs of$],[$transportation$-$in$]]],[\backslash$table$[[$Cost of goods$],[$sold$]],74,500,,\backslash$table$[[$Required$],[$I$.$ Compute the company's net sales for the year.$]]],[\backslash$table$[[$Sales salaries$],[$expense$]],32,000,,],[\backslash$table$[[$Rent expense$],[-$Selling$],[$space$]],8,000,,\backslash$table$[[3.$ Prepare a multiple$-$step income statement that$],[$includes separate categories for net sales, cost of goods$],[$sold$,$ selling expenses, and general and administrative$],[$expenses$.]]],[\backslash$table$[[$Store supplies$],[$expense$]],1,500,,\backslash$table$[[4.$ Prepare a single$-$step income statement that includes$],[$these expense categories: cost of goods sold, selling$],[$expenses$,$ and general and administrative expenses.$]]],[\backslash$table$[[$Advertising$],[$expense$]],13,000,,],[\backslash$table$[[$Office salaries$],[$expense$]],28,500,,],[\backslash$table$[[$Rent expense$],[-$Office space$]],3,600,,],[\backslash$table$[[$Office supplies$],[$expense$]],400,,],[$Totals$,$$$355,150,50,]]$

Answer & Explanation Solved by verified expert

See Answer