Selected information from the adjusted trial balance of Tops4U as of December 31, 2016, follows: INSTRUCTIONS Prepare

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Selected information from the adjusted trial balance of Tops4U as of December 31, 2016, follows:
Selected information from the adjusted trial balance of Tops4U as
Selected information from the adjusted trial balance of Tops4U as

INSTRUCTIONS
Prepare a departmental income statement for the year ended December 31, 2016. The bases for allocating indirect expenses are given below. Show all allocations in a neat and orderly form.
1. Insurance Expense: in proportion to the total of the furniture and fixtures (the gross assets before depreciation) and the ending inventory in the departments. These totals are as follows:
Department A................$180,000
Department B..................120,000
Total...........................$300,000
2. Rent Expense and Utilities Expense: on the basis of floor space occupied, as follows:
Department A..................4,900 square feet
Department B..................2,100 square feet
Total.............................7,000 square feet
3. Office Salaries Expense, Other Office Expenses, and Depreciation Expense-Office Equipment: on the basis of the gross sales in each department.
4. Uncollectible Accounts Expense: on the basis of net sales in each department.
5. Depreciation Expense-Furniture and Fixtures: in proportion to cost of furniture and fixtures in each department. These costs are as follows. (Round to nearest dollar.)
Department A.............$39,000
Department B...............21,000
Total.........................$60,000
Analyze: Which department reports the highest return on net sales?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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Related Book For  book-img-for-question

College Accounting Chapters 1-30

ISBN: 978-0077862398

14th edition

Authors: John Price, M. David Haddock, Michael Farina

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