Bryan Book and Software has two sales departments; book and software. After recording and posting all adjustments, including the adjustments for merchandise inventory, the accountant prepared the following adjusted trial balance at the end of the fiscal year:

Merchandise inventories at the beginning of the year were as follows: book department, $157,856; software department, $72,448. The bases (and sources of figures) for apportioning expenses to the two departments are as follows:
• Sales Salary Expense (payroll register): book department, $136,676; software department, $106,888 • Advertising Expense (newspaper column inches): book department, 1,200 inches; software department, 800 inches • Depreciation Expense, Store Equipment (plant and equipment ledger): book department, $23,284; software department, $8,316 • Store Supplies Expense (requisitions): book department, $640; software department, $572 • Miscellaneous Selling Expense (volume of gross sales): book department, $728;
software department, $312 (verify these figures)
• Rent Expense and Utilities Expense (floor space): book department, 5,000 square feet; software department, 3,000 square feet • Insurance Expense (average cost of merchandise inventory, rounded): book department, $1,148; software department, $532 (verify these figures)
• Bad Debts Expense (volume of gross sales): book department, $3,080; software department, $1,320 (verify these figures)
• Miscellaneous General Expense (volume of gross sales): book department, $1,092; software department, $468 (verify these figures)
Instructions Prepare an income statement by department to show income from operations and a nondepartmentalized income statement (using the Total columns) to show net income for the entire company.
Check Figure Net Income, $80,561