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.
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 Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter9: Working Capital
Section: Chapter Questions
Problem 19E
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Topic Video
Question
Valley Company’s adjusted |
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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