Bella’s Garden Shop, a sole proprietorship, has two sales departments: plants and tools. After recording and posting all adjustments, including the adjustments for merchandise inventory, the accountant presented the adjusted trial balance shown at the end of the fiscal year.
Instructions Prepare an income statement to show gross profit for each department and income from operations and net income, for the entire business. Beginning bal¬
ances of merchandise inventory are as follows: plants, $57,040; tools, $32,106.