Question
In: Accounting
Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows.
Valley Company's adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense-selling space, store supplies expense, advertising expense. It categorizes the remaining expenses as general and administrative.
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Expert Solution
Answer -
1. Answer -
| Net Sales | |
| Sales | $263,340 |
| Less: Sales discounts | $4,029 |
| Less: Sales returns and allowances | $17,380 |
| Net sales | $241,931 |
Calculation:
Net sales:
= Sales - Sales discounts - Sales returns and allowances
= $263,340 - $4,029 - $17,380
= $241,931
2. Answer -
| Cost of Merchandise Purchased | |
| Invoice cost of merchandise purchased | $113,190 |
| Purchase discounts received | ($2,377) |
| Purchase returns and allowances | ($5,433) |
| Costs of transportation-in | $3,900 |
| Total cost of merchandise purchased | $109,280 |
Calculation:
Total cost of merchandise purchased:
= Invoice cost of merchandise purchased - Purchase discounts received - Purchase returns and allowances + Costs of transportation-in
= $113,190 - $2,377 - $5,433 + $3,900
= $109,280
3. Answer -
| Valley Company | ||
| Income Statement | ||
| For Year Ended August 31 | ||
| Sales | $263,340 | |
| Less: Sales discounts | $4,029 | |
| Less: Sales returns and allowances | $17,380 | $21,409 |
| Net sales | $241,931 | |
| Cost of goods sold | $101,850 | |
| Gross profit | $140,081 | |
| Expense: | ||
| Selling expenses: | ||
| Sales salaries expense | $36,078 | |
| Rent expense-selling space | $12,377 | |
| Store supplies expense | $3,160 | |
| Advertising expense | $22,384 | |
| Total selling expenses | $73,999 | |
| General and administrative expenses: | ||
| Office salaries expense | $32,918 | |
| Rent expense-office space | $3,160 | |
| Office supplies expense | $1,053 | |
| Total general and administrative expenses | $37,131 | |
| Total expenses | $111,130 | |
| Net income | $28,951 | |
Calculation:
Net sales:
= Sales - Sales discounts - Sales returns and allowances
= $263,340 - $4,029 - $17,380
= $241,931
Gross profit:
= Net sales - Cost of goods sold
= $241,931 - $101,850
= $140,081
Total selling expenses:
= Sales salaries expense + Rent expense-selling space + Store supplies expense + Advertising expense
= $36,078 + $12,377 + $3,160 + $22,384
= $73,999
Total general and administrative expenses:
= Office salaries expense + Rent expense-office space + Office supplies expense
= $32,918 + $3,160 + $1,053
= $37,131
Total expenses:
= Total selling expenses + Total general and administrative expenses
= $73,999 + $37,131
= $111,130
Net income:
= Gross profit - Total expenses
= $140,081 - $111,130
= $28,951
4. Answer -
| Valley Company | ||
| Income Statement | ||
| For Year Ended August 31 | ||
| Net sales | $241,931 | |
| Expenses: | ||
| Cost of goods sold | $101,850 | |
| Selling expenses | $73,999 | |
| General and administrative expenses | $37,131 | |
| Total expenses | $212,980 | |
| Net income | $28,951 | |
Calculation:
Net sales:
= Sales - Sales discounts - Sales returns and allowances
= $263,340 - $4,029 - $17,380
= $241,931
Selling expenses:
= Sales salaries expense + Rent expense-selling space + Store supplies expense + Advertising expense
= $36,078 + $12,377 + $3,160 + $22,384
= $73,999
General and administrative expenses:
= Office salaries expense + Rent expense-office space + Office supplies expense
= $32,918 + $3,160 + $1,053
= $37,131
Total expenses:
= Cost of goods sold + Selling expenses + General and administrative expenses
= $101,850 + $73,999 + $37,131
= $212,980
Net income:
= Net sales - Total expenses
= $241,931 - $212,980
= $28,951
ekkarill92 answered 1 year agoRelated Solutions
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows.
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense—selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.
Debit
Credit
Merchandise inventory (ending)
$
30,500
Other (noninventory) assets
122,000
Total liabilities
$
35,228
Common stock
...
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following...
Valley Company’s adjusted trial balance on August 31, its fiscal
year-end, follows. It categorizes the following accounts as selling
expenses: sales salaries expense, rent expense—selling space, store
supplies expense, and advertising expense. It categorizes the
remaining expenses as general and administrative.
Debit
Credit
Merchandise inventory (ending)
$
41,400
Other (noninventory) assets
57,370
Total liabilities
$
24,300
Common stock
16,400
Retained earnings
20,500
Dividends
8,700
Sales
225,200
Sales discounts
2,280
Sales returns and allowances
12,000
Cost of goods sold
74,700
Sales...
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following...
Valley Company’s adjusted trial balance on August 31, its fiscal
year-end, follows. It categorizes the following accounts as selling
expenses: sales salaries expense, rent expense—selling space, store
supplies expense, and advertising expense. It categorizes the
remaining expenses as general and administrative.
Debit
Credit
Merchandise inventory (ending)
$
41000
Other (noninventory) assets
130400
Total liabilities
$
25,000
Common stock
10,000
Retained earnings
94550
Dividends
8,000
Sales
225600
Sales discounts
2250
Sales returns and allowances
12,000
Cost of goods sold
74500
Sales...
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following...
Valley Company’s adjusted trial balance on August 31, its fiscal
year-end, follows. It categorizes the following accounts as selling
expenses: sales salaries expense, rent expense—selling space, store
supplies expense, and advertising expense. It categorizes the
remaining expenses as general and administrative.
Debit
Credit
Merchandise inventory (ending)
$
41,000
Other (noninventory) assets
130,400
Total liabilities
$
25,000
Common stock
10,000
Retained earnings
94,550
Dividends
8,000
Sales
225,600
Sales discounts
2,250
Sales returns and allowances
12,000
Cost of goods sold
74,500...
Valley Company’s adjusted trial balance on August 31, 2017, its fiscal year-end, follows. Debit Credit...
Valley Company’s adjusted trial balance on August 31, 2017, its
fiscal year-end, follows.
Debit
Credit
Merchandise
inventory
$
41,000
Other (noninventory) assets
130,400
Total liabilities
$
25,000
Common stock
10,000
Retained earnings
94,550
Dividends
8,000
Sales
225,600
Sales discounts
2,250
Sales returns and
allowances
12,000
Cost of goods sold
74,500
Sales salaries expense
32,000
Rent expense—Selling space
8,000
Store supplies expense
1,500
Advertising expense
13,000
Office salaries expense
28,500
Rent expense—Office space
3,600
Office supplies expense
400
Totals
$...
Valley Company’s adjusted trial balance on August 31, 2017, its fiscal year-end, follows. Debit Credit Merchandise...
Valley Company’s adjusted trial balance on August 31, 2017, its
fiscal year-end, follows. Debit Credit Merchandise inventory $
42,000 Other (non inventory) assets 168,000 Total liabilities $
48,510 Common stock 10,000 Retained earnings 127,550 Dividends
8,000 Sales 287,280 Sales discounts 4,395 Sales returns and
allowances 18,960 Cost of goods sold 110,754 Sales salaries expense
39,357 Rent expense—Selling space 13,502 Store supplies expense
3,447 Advertising expense 24,419 Office salaries expense 35,910
Rent expense—Office space 3,447 Office supplies expense 1,149
Totals $...
Valley Company’s adjusted trial balance on August 31, 2017, its fiscal year-end, follows. Debit Credit Merchandise...
Valley Company’s adjusted trial balance on August 31, 2017, 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...
Valley Company’s adjusted trial balance on August 31, 2016, its fiscal year-end, follows. Debit Credit Merchandise...
Valley Company’s adjusted trial balance on August 31, 2016, its
fiscal year-end, follows. Debit Credit Merchandise inventory $
37,000 Other (noninventory) assets 148,000 Total liabilities $
42,735 Common stock 49,806 Retained earnings 72,788 Dividends 8,000
Sales 253,080 Sales discounts 3,872 Sales returns and allowances
16,703 Cost of goods sold 98,034 Sales salaries expense 34,672 Rent
expense—Selling space 11,895 Store supplies expense 3,037
Advertising expense 21,512 Office salaries expense 31,635 Rent
expense—Office space 3,037 Office supplies expense 1,012 Totals $
418,409...
Valley Company’s adjusted trial balance on August 31, 2017, its fiscal year-end, follows. Debit Credit Merchandise...
Valley Company’s adjusted trial balance on August 31, 2017, its
fiscal year-end, follows.
Debit
Credit
Merchandise
inventory
$
40,500
Other (noninventory) assets
62,090
Total liabilities
$
25,500
Common stock
17,200
Retained earnings
21,500
Dividends
8,800
Sales
226,200
Sales discounts
2,210
Sales returns and
allowances
13,000
Cost of goods sold
74,300
Sales salaries expense
32,800
Rent expense—Selling space
8,800
Store supplies expense
1,800
Advertising expense
14,000
Office salaries expense
28,200
Rent expense—Office space
3,500
Office supplies expense
400
Totals
$
290,400...
Valley Company’s adjusted trial balance on August 31, its fiscalyear-end, follows. It categorizes the following...
Valley Company’s adjusted trial balance on August 31, its fiscal
year-end, follows. It categorizes the following accounts as selling
expenses: sales salaries expense, rent expense—selling space, store
supplies expense, and advertising expense. It categorizes the
remaining expenses as general and administrative.DebitCreditMerchandise inventory (ending)$43,500Other (noninventory) assets174,000Total liabilities$50,243Common stock58,556Retained earnings83,482Dividends8,000Sales297,540Sales discounts4,552Sales returns and allowances19,638Cost of goods sold114,570Sales salaries expense40,763Rent expense—Selling space13,984Store supplies expense3,570Advertising expense25,291Office salaries expense37,193Rent expense—Office space3,570Office supplies expense1,190Totals$489,821$489,821Beginning merchandise inventory was $35,105. Supplementary
records of merchandising activities for the year...
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