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Valley Company's odjusted trial balance on August 31, its fiscal yesr-end, follows. It categorizes the following accounts os selling expenses: sales solaries expense, rent expense-selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses os general and administrative. Debit Credit Herchandise inventory (ending) $ 42,600 55,510 Other (noninventory) assets Total liabilities $ 24, 100 15, 520 29,400 Conmon stock Retained earnings Dividends 8,700 Sales 225, 400 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 2,260 14,000 72,600 32,100 8,600 1, s00 13,000 29, 800 3,400 Totals $284,420 $284,420 Beginning merchandise inventory was $25,700. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation in $92,100 2,s00 4,900 4,800 Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). Vow trannaction lint Journal entry worksheet 2 3 Record the entry to close the income statement accounts with credit balances. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31

Valley Company's odjusted trial balance on August 31, its fiscal yesr-end, follows. It categorizes the following accounts os selling expenses: sales solaries expense, rent expense-selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses os general and administrative. Debit Credit Herchandise inventory (ending) $ 42,600 55,510 Other (noninventory) assets Total liabilities $ 24, 100 15, 520 29,400 Conmon stock Retained earnings Dividends 8,700 Sales 225, 400 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 2,260 14,000 72,600 32,100 8,600 1, s00 13,000 29, 800 3,400 Totals $284,420 $284,420 Beginning merchandise inventory was $25,700. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation in $92,100 2,s00 4,900 4,800 Required: Prepare closing entries as of August 31 (the perpetual inventory system is used). Vow trannaction lint Journal entry worksheet 2 3 Record the entry to close the income statement accounts with credit balances. Note: Enter debits before credits. Date General Journal Debit Credit Aug 31

FINANCIAL ACCOUNTING
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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Valley Company's odjusted trial balance on August 31, its fiscal year-end, follows. It cstegorizes the following accounts os selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, and advertising expense. It cotegorizes the remaining expenses os general and administrative. Debit Credit Merchandise inventory (ending) Other (noninventory) assets Total liabilitics $ 42,680 55,518 $ 24,100 Conmon stock 15,520 Retained carnings Dividends Sales Sales discounts Sales returns and allowances 19,48e 8,700 225,480 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 2,268 14, 000 72,600 32,180 8,600 1,se0 13,000 29,800 3,400 350 Totals $284,420 $284,420 Beginning merchandise inventory wes $25,700. Supplementery records of merchandising octivities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $92,100 2,580 4,980 4,880 Required: Prepare closing entries es of August 31 (the perpetual inventory system is used). Vlewtraneaction llat 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 General Jourmal Debit Credit Aug 31 Record entry Clear entry Vew general journal
Transcribed Image Text:Valley Company's odjusted trial balance on August 31, its fiscal year-end, follows. It cstegorizes the following accounts os selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, and advertising expense. It cotegorizes the remaining expenses os general and administrative. Debit Credit Merchandise inventory (ending) Other (noninventory) assets Total liabilitics $ 42,680 55,518 $ 24,100 Conmon stock 15,520 Retained carnings Dividends Sales Sales discounts Sales returns and allowances 19,48e 8,700 225,480 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 2,268 14, 000 72,600 32,180 8,600 1,se0 13,000 29,800 3,400 350 Totals $284,420 $284,420 Beginning merchandise inventory wes $25,700. Supplementery records of merchandising octivities for the year ended August 31 reveal the following itemized costs. Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in $92,100 2,580 4,980 4,880 Required: Prepare closing entries es of August 31 (the perpetual inventory system is used). Vlewtraneaction llat 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 General Jourmal Debit Credit Aug 31 Record entry Clear entry Vew general journal
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