- 8 Part 2 Of 2 U Ebook Required Information The Following Information Applies To The Questions Displayed Below Valley 1 (214.49 KiB) Viewed 9 times
2. Record the entry to close the income statement accounts withdebit balances.
3. Record the entry to close income summary.
4. Record the entry to close the Dividends account.
8 Part 2 of 2 U eBook Required information [The following information applies to the questions displayed below.] Valley Company's adjusted account balances from its general ledger 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. Credit Adjusted Account Balances Merchandise inventory (ending) Other (non-inventory) assets Total liabilities Common stock. Retained earnings Dividends Sales 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 Totals Debit $ 44,000 176,000 Invoice cost of merchandise purchases Purchases discounts received Purchases returns and allowances Costs of transportation-in 8,000 4,605 19,863 115,842 41,232 14,145 3,612 25,582 37,620 3,612 1,204 $ 495,317 $ 50,820 84,388 59,229 300,960 S 495,317 Beginning merchandise inventory was $35,508. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs. $ 129,360 2,717 6,209 3,900 Required: Prepare closing entries as of August 31 (the perpetual inventory system is used).