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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education