Valley Company's adjusted account balances fro categorizes the following
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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![Problems Chapter 4 i
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F1
Adjusted Account Balances
Merchandise inventory (ending)
Other (non-inventory) assets
Total liabilities
Common stock
[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.
Credit
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
Invoice cost of merchandise purchases
Purchases discounts received
Purchases returns and allowances
Costs of transportation-in
2
F2
#3
Beginning merchandise inventory was $33,894. Supplementary records of merchandising activities for the year ended
August 31 reveal the following itemized costs.
80
F3
$
Debit
$ 42,000
168,000
4
8,000
4,395
18,960
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.
000
110,754
39,357
4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general
and administrative expenses.
F4
13,502
3,447
24,419
35,910
3,447
1,149
$ 473,340 $ 473,340
$ 123,480
2,593
5,927
3,900
$ 48,510
81,013
56,537
287,280
%
5
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Transcribed Image Text:Problems Chapter 4 i
0
inces
Ic
raw
Fill
!
F1
Adjusted Account Balances
Merchandise inventory (ending)
Other (non-inventory) assets
Total liabilities
Common stock
[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.
Credit
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
Invoice cost of merchandise purchases
Purchases discounts received
Purchases returns and allowances
Costs of transportation-in
2
F2
#3
Beginning merchandise inventory was $33,894. Supplementary records of merchandising activities for the year ended
August 31 reveal the following itemized costs.
80
F3
$
Debit
$ 42,000
168,000
4
8,000
4,395
18,960
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.
000
110,754
39,357
4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general
and administrative expenses.
F4
13,502
3,447
24,419
35,910
3,447
1,149
$ 473,340 $ 473,340
$ 123,480
2,593
5,927
3,900
$ 48,510
81,013
56,537
287,280
%
5
< Prev
F5
Saved
1
^
6
3 4
MacBook Air
of 6
F6
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7
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Next >
11
8
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(
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F9
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