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Valley Company's adjusted trial balance on August 31, 2017, its fiscal year-end, follows.
Valley Company's adjusted trial balance on August 31, 2017, its
On August 31, 2016, merchandise inventory was $25,400. Supplementary records of merchandising activities for the year ended August 31, 2017, reveal the following itemized costs.
Invoice cost of merchandise purchases ........................... $92,000
Purchases discounts received ......................................2,000
Purchases returns and allowances ................................4,500
Costs of transportation-in .......................................... 4,600
Required
1. Compute the company's net sales for the year.
2. Compute the company's total cost of merchandise purchased for the year.
3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.
4. 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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