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 Merchandise inventory (ending) Other (non-inventory) assets Total liabilities Common stock 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 Debit $ 41,000 130,400 Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in 8,000 2,250 12,000 74,500 32,000 8,000 1,500 13,000 28,500 3,600 400 $ 355,150 Credit $ 355,150 Beginning merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. $ 92,000 2,000 4,500 4,600 $ 25,000 10,000 94,550 225,600

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 Merchandise inventory (ending) Other (non-inventory) assets Total liabilities Common stock 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 Debit $ 41,000 130,400 Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in 8,000 2,250 12,000 74,500 32,000 8,000 1,500 13,000 28,500 3,600 400 $ 355,150 Credit $ 355,150 Beginning merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. $ 92,000 2,000 4,500 4,600 $ 25,000 10,000 94,550 225,600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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