Journal entry worksheet 1 2 3 4 Record the entry to close the income statement accounts with credit balances. Note: Enter debits before credits. Date August 31 General Journal Debit Credit Record entry Clear entry View general journal
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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.
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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.
| Adjusted Account Balances | Debit | Credit |
|---|---|---|
| Merchandise inventory (ending) | $ 32,000 | |
| Other (non-inventory) assets | 128,000 | |
| Total liabilities | $ 36,960 | |
| Common stock | 64,560 | |
| Retained earnings | 43,076 | |
| Dividends | 8,000 | |
| Sales | 218,880 | |
| Sales discounts | 3,349 | |
| Sales returns and allowances | 14,446 | |
| Cost of goods sold | 85,312 | |
| Sales salaries expense | 29,987 | |
| Rent expense—Selling space | 10,287 | |
| Store supplies expense | 2,627 | |
| Advertising expense | 18,605 | |
| Office salaries expense | 27,360 | |
| Rent expense—Office space | 2,627 | |
| Office supplies expense | 876 | |
| Totals | $ 363,476 | $ 363,476 |
Beginning merchandise inventory was $25,824. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.
| Invoice cost of merchandise purchases | $ 94,080 |
|---|---|
| Purchases discounts received | 1,976 |
| Purchases returns and allowances | 4,516 |
| Costs of transportation-in | 3,900 |
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