Bay Book and Software has two sales departments: Book and Software. After recording and posting all adjustments,
Question:
¢ Sales Salary Expense (payroll register): Book Department, $ 45,559; Software Department, $ 35,629
¢ Advertising Expense (newspaper column inches): Book Department, 550 inches; Software Department, 450 inches
¢ Depreciation Expense, Store Equipment (property and equipment ledger): Book Department, $ 7,851; Software Department, $ 2,682
¢ Store Supplies Expense (requisitions): Book Department, $ 205; Software Department, $ 199
¢ Miscellaneous Selling Expense (volume of gross sales): Book Department, $ 240; Software Department, $ 110
¢ Rent Expense and Utilities Expense (floor space): Book Department, 9,000 square feet; Software Department, 7,000 square feet
¢ Bad Debts Expense (volume of gross sales): Book Department, $ 1,029; Software Department, $ 441
¢ Miscellaneous General Expense (volume of gross sales): Book Department, $ 364; Software Department, $ 156
Required
Prepare an income statement by department to show income from operations, as well as a nondepartmentalized income statement ( using the Total columns) to show net income for the entirecompany.
Step by Step Answer:
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille