Departmental Income Statement
The following information was obtained from the ledger of WoodfieldCandies, Inc., at the end of 2016
Woodfield Candies, Inc.
Trial Balance
December 31, 2016 |
|---|
| Debit | Credit |
|---|
| Cash | | | | $45,000 | |
| Accounts receivable (net) | | | | 156,000 | |
| Inventory, December 31, 2016 | | | | 180,000 | |
| Equipment and fixtures (net) | | | | 540,000 | |
| Accounts payable | | | | | $108,000 |
| Common stock | | | | | 450,000 |
| Retained earnings | | | | | 180,000 |
| Revenue -department X | | | | | 859,000 |
| Revenue -department Y | | | | | 368,000 |
| Cost of goods sold - department X | | | | 420,000 | |
| Cost of goods sold - department Y | | | | 216,000 | |
| Sales salaries expense | | | | 198,000 | |
| Advertising expense | | | | 51,000 | |
| Insurance expense | | | | 24,000 | |
| Uncollectible accounts expense | | | | 9,000 | |
| Occupancy expense | | | | 36,000 | |
| Office and other administrative expense | | | | 90,000 | |
| | | | $1,965,000 | $1,965,000 |
Woodfield analyzes its operating expenses at the end of eachperiod in order to prepare an income statement that will exhibitdepartmental contribution to common expenses. From payroll records,advertising copy, and other records, the following tabulation wasobtained:
| Traceable Expense | |
|---|
| Dept. X | Dept. Y | Common Expense |
|---|
| Sales salaries expense | | | | $150,000 | $48,000 | |
| Advertising expense | | | | 21,000 | 9,000 | $21,000 |
| Insurance expense | | | | 15,000 | 9,000 | |
| Uncollectible accounts expense | | | | 6,000 | 3,000 | |
| Occupancy expense | | | | | | 36,000 |
| Office and other administrative expense | | | | 15,000 | 12,000 | 63,000 |
Prepare a departmental income statement for Woodfield Candies,Inc., showing departmental contribution to common expenses,assuming an overall income tax rate of 35%.
Do not use negative signs with your answers below.
Woodfield Candies, Inc.
Departmental Income Statement
For the Year Ended December 31, 2016 |
|---|
| Dept. X | Dept. Y | Total |
|---|
| Sales | | | | Answer | Answer | Answer |
| Cost of goods sold | | | | Answer | Answer | Answer |
| Gross profit | | | | Answer | Answer | Answer |
| Operating expenses: | | | | | | |
| Sales salaries expense | | | | Answer | Answer | Answer |
| Advertising expense | | | | Answer | Answer | Answer |
| Insurance expense | | | | Answer | Answer | Answer |
| Uncollectible accounts expense | | | | Answer | Answer | Answer |
| Office and other administrative expense | | | | Answer | Answer | Answer |
| Traceable operating expenses | | | | Answer | Answer | Answer |
| Contribution to common expenses | | | | Answer | Answer | Answer |
| Common expenses | | | | | | Answer |
| Income before tax | | | | | | Answer |
| Income tax expense | | | | | | Answer |
| Net income | | | | | | Answer |
