La Hacienda Company has two departments: Furniture and Lighting. La Hacienda’s accountant prepares an adjusted trial balance (shown below) at the end of the fiscal year.

The trial balance is prepared after all adjustments, including the adjustments for merchandise inventory, have been recorded and posted.

Merchandise inventories at the beginning of the year were as follows: Furniture Department, $ 83,850; Lighting Department, $ 42,630. The bases (and sources of figures) for apportioning expenses to the two departments are as follows (rounded to the nearest dollar):

• Sales Salary Expense (payroll register): Furniture Department, $ 74,800; Lighting Department, $ 48,420

• Advertising Expense (newspaper column inches): Furniture Department, 600 inches; Lighting Department, 400 inches

• Depreciation Expense, Store Equipment (property and equipment ledger): Furniture Department, $ 9,616; Lighting Department, $ 3,820

• Store Supplies Expense (requisitions): Furniture Department, $ 418; Lighting Department, $ 324

• Miscellaneous Selling Expense (volume of gross sales): Furniture Department, $ 408; Lighting Department, $ 272

• Rent Expense and Utilities Expense (floor space): Furniture Department, 2,500 square feet; Lighting Department, 1,500 square feet

• Bad Debts Expense (volume of gross sales): Furniture Department, $ 1,080; Lighting Department, $ 720

• Miscellaneous General Expense (volume of gross sales): Furniture Department, $ 492; Lighting Department, $ 328

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 entire company.

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La Hacionda Company Adjusted Trial Balance January 31, 20- Account Name Cash Debit Credit 28.274 Accounts Receivable 68,890 Allowance for Doubtul Accounts 2,620 Merchandise Inventory. Furniture Department Merchandise Inventory, Lighting Department Store Supplies Store Equipment Accumulated Depreciation, Store Equipment Accounts Payable Sales Tax Payable 84,142 41,138 762 50,682 41,810 38,680 1,294 M. Chapman, Capital M. Chapman, Drawing Sales, Furniture Department 238,332 126,480 409,800 Sales, Lighting Department 273,200 Sales Returns and Allowances, Furniture Department Sales Returns and Alowances, Lighting 11,685 Department Purchases, Furniture Dapartment Purchases, Lighting Department Purchases Returns and Allowances, Furniture 1,716 251,847 165,242 Department Purchases Returns and Allowances, Lighting Department Purchases Discounts, Furniture Department Purchases Discounts, Lighting Department Freight In. Furniture Department Freight In, Lighting Department Sales Salary Expense Advertising Expense Depreciation Expense, Store Equipment Store Supplies Expense Mscellaneous Selling Expense Rent Expense Utilities Expense Bad Debts Expense Miscellaneous General Expense Interest Expense 4,618 1,792 5,496 2,964 13,255 6,885 123.220 14,000 13,436 742 680 8,000 4, 100 1,800 820 2,800 1,020,596 1,020,506