Valley Company's adjusted trial balance on August 31, 2015, its fiscal year-end, follows. Debit Credit Merchandise inventory $40,500 Other (noninventory) assets 45,590 Total liabilities $ 25,800 Common stock 17,040 Retained earnings 4,260 Dividends 8,400 Sales 226,700 Sales discounts 2,260 Sales returns and allowances 13,500 Cost of goods sold 74,600 Sales salaries expense 32,400 Rent expense-Selling space 8,400 Store supplies expense 1,800 Advertising expense 13,500 Office salaries expense 29,200 Totals $273,800 $ 273,800 On August 31, 2014, merchandise inventory was $25,600. Supplementary records of merchandising activities for the year ended August 31, 2015, reveal the following itemized costs. Invoice cost of merchandise purchases $92,500 Purchase discounts received Purchase returns and allowances 2,700 4,900 4,600 Costs of transportation-in Required: 1. Prepare closing entries as of August 31, 2015 (the perpetual inventory system is used).? Close the income statement accounts with credit balances. Close the income statement accounts with debit balances. Close Income summary. Close the Dividends account.

Valley Company's adjusted trial balance on August 31, 2015, its fiscal year-end, follows. Debit Credit Merchandise inventory $40,500 Other (noninventory) assets 45,590 Total liabilities $ 25,800 Common stock 17,040 Retained earnings 4,260 Dividends 8,400 Sales 226,700 Sales discounts 2,260 Sales returns and allowances 13,500 Cost of goods sold 74,600 Sales salaries expense 32,400 Rent expense-Selling space 8,400 Store supplies expense 1,800 Advertising expense 13,500 Office salaries expense 29,200 Totals $273,800 $ 273,800 On August 31, 2014, merchandise inventory was $25,600. Supplementary records of merchandising activities for the year ended August 31, 2015, reveal the following itemized costs. Invoice cost of merchandise purchases $92,500 Purchase discounts received Purchase returns and allowances 2,700 4,900 4,600 Costs of transportation-in Required: 1. Prepare closing entries as of August 31, 2015 (the perpetual inventory system is used).? Close the income statement accounts with credit balances. Close the income statement accounts with debit balances. Close Income summary. Close the Dividends account.

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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