Valley Company’s adjusted trial balance on August 31, 2015, its fiscal year-end, follows.         Debit     Credit     Merchandise inventory   $ 38,000           Other (noninventory) assets     152,000           Total liabilities         $ 43,890     K. Valley, Capital           125,585     K. Valley, Withdrawals     8,000           Sales           259,920     Sales discounts     3,977           Sales returns and allowances     17,155           Cost of goods sold     100,577           Sales salaries expense     35,609           Rent expense—Selling space     12,216           Store supplies expense     3,119           Advertising expense     22,093           Office salaries expense     32,490           Rent expense—Office space     3,119           Office supplies expense      1,040                           Totals   $ 429,395   $ 429,395                       On August 31, 2014, merchandise inventory was $30,666. Supplementary records of merchandising activities for the year ended August 31, 2015, reveal the following itemized costs.           Invoice cost of merchandise purchases $ 111,720     Purchase discounts received   2,346     Purchase returns and allowances   5,363     Costs of transportation-in   3,900     Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Valley Company’s adjusted trial balance on August 31, 2015, its fiscal year-end, follows.


 

      Debit     Credit  
  Merchandise inventory   $ 38,000        
  Other (noninventory) assets     152,000        
  Total liabilities         $ 43,890  
  K. Valley, Capital           125,585  
  K. Valley, Withdrawals     8,000        
  Sales           259,920  
  Sales discounts     3,977        
  Sales returns and allowances     17,155        
  Cost of goods sold     100,577        
  Sales salaries expense     35,609        
  Rent expense—Selling space     12,216        
  Store supplies expense     3,119        
  Advertising expense     22,093        
  Office salaries expense     32,490        
  Rent expense—Office space     3,119        
  Office supplies expense      1,040        
               
  Totals   $ 429,395   $ 429,395  
               
 


 

On August 31, 2014, merchandise inventory was $30,666. Supplementary records of merchandising activities for the year ended August 31, 2015, reveal the following itemized costs.


 

     
  Invoice cost of merchandise purchases $ 111,720  
  Purchase discounts received   2,346  
  Purchase returns and allowances   5,363  
  Costs of transportation-in   3,900  
 

Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.

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