P23-7A The Printed Page has both a Printing and a Copy Services Department. At May 31. the end of the fiscal year, the bookkeeper prepared the adjusted trial balance on page 964. The Printed Page owns its printing equipment and leases a high-speed copier from Xerox. The Printed Page performs print jobs on a credit basis for established customers. but copy services are cash only. The store manager spends 60% of her time on Printing Services and 40% on Copy Services. The bookkeeper spends approximately two-thirds of Cash Accounts receivable $ 2.400 3.300 Prepaid expenses. 1,100 Building and office furniture Accumulated depreciation-building and furniture 84,900 $ 26,300 Other assets. 4,700 Accounts payable 3,200 Unearned service revenue 2,200 Owners' equity.. 24.800 Printing service revenue. 68,750 Copy service revenue.. 56,250 Salary expense-machine operators 23,600 Salary expense-store manager. 22,900 Salary expense-bookkeeper. 18.300 Lease expense-copy equipment. 12,000 Property tax expense 2,800 Depreciation expense-building. 2,000 Depreciation expense-printing equipment. 1,300 Insurance expense 1,600 Bad debt expense 600 $181.500 $181.500 his time on accounts receivable and other Printing Department transactions, and the remainder on Copy Services transactions. Insurance expense is evenly divided between the two departments. The company allocates all other expenses based on relative service revenue. Required 1. Prepare departmental income statements. 2. Which department is more profitable? What factor contributes most to the profit differ- ences between the two departments?