Valley Company’s adjusted trial balance on August 31, 2017, itsfiscal year-end, follows.DebitCreditMerchandise...Valley Company’s adjusted...

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Accounting

Valley Company’s adjusted trial balance on August 31, 2017, itsfiscal year-end, follows.
Debit Credit
Merchandiseinventory $ 40,500
Other (noninventory) assets 62,090
Total liabilities $ 25,500
Common stock 17,200
Retained earnings 21,500
Dividends 8,800
Sales 226,200
Sales discounts 2,210
Sales returns andallowances 13,000
Cost of goods sold 74,300
Sales salaries expense 32,800
Rent expense—Selling space 8,800
Store supplies expense 1,800
Advertising expense 14,000
Office salaries expense 28,200
Rent expense—Office space 3,500
Office supplies expense 400
Totals $ 290,400 $ 290,400

On August 31, 2016, merchandise inventory was $25,100.Supplementary records of merchandising activities for the yearended August 31, 2017, reveal the following itemized costs.
Invoice cost of merchandisepurchases $ 91,300
Purchases discountsreceived 2,200
Purchases returns andallowances 4,300
Costs of transportation-in 4,900

Required:
1. Prepare closing entries as of August 31,2017 (the perpetual inventory system is used).

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Ans Date Accounts Titles and Explanations Debit Credit 31Aug17 Sales 226200 To Income summary 226200 amount of sales transferred to income summary 31Aug17 Income summary 179010 To Sales discounts 2210 To Sales returns and allowances 13000 To See Answer

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In: AccountingValley Company’s adjusted trial balance on August 31, 2017, itsfiscal year-end, follows.DebitCreditMerchandise...Valley Company’s adjusted trial balance on August 31, 2017, itsfiscal year-end, follows.DebitCreditMerchandiseinventory$40,500Other (noninventory) assets62,090Total liabilities$25,500Common stock17,200Retained earnings21,500Dividends8,800Sales226,200Sales discounts2,210Sales returns andallowances13,000Cost of goods sold74,300Sales salaries expense32,800Rent expense—Selling space8,800Store supplies expense1,800Advertising expense14,000Office salaries expense28,200Rent expense—Office space3,500Office supplies expense400Totals$290,400$290,400On August 31, 2016, merchandise inventory was $25,100.Supplementary records of merchandising activities for the yearended August 31, 2017, reveal the following itemized costs.Invoice cost of merchandisepurchases$91,300Purchases discountsreceived2,200Purchases returns andallowances4,300Costs of transportation-in4,900Required:1. Prepare closing entries as of August 31,2017 (the perpetual inventory system is used).

	Debit		Credit
Merchandiseinventory	$	40,500
Other (noninventory) assets		62,090
Total liabilities			$	25,500
Common stock				17,200
Retained earnings				21,500
Dividends		8,800
Sales				226,200
Sales discounts		2,210
Sales returns andallowances		13,000
Cost of goods sold		74,300
Sales salaries expense		32,800
Rent expense—Selling space		8,800
Store supplies expense		1,800
Advertising expense		14,000
Office salaries expense		28,200
Rent expense—Office space		3,500
Office supplies expense		400
Totals	$	290,400	$	290,400


Invoice cost of merchandisepurchases	$	91,300
Purchases discountsreceived		2,200
Purchases returns andallowances		4,300
Costs of transportation-in		4,900