Question
Departmental Income Statement The following information was obtained from the ledger of Stillwell Emporium, Inc., at the end of 2016 Stillwell Emporium, Inc. Trial Balance
Departmental Income Statement The following information was obtained from the ledger of Stillwell Emporium, Inc., at the end of 2016
| Stillwell Emporium, Inc. Trial Balance December 31, 2016 | |||||
|---|---|---|---|---|---|
| Debit | Credit | ||||
| Cash | $20,000 | ||||
| Accounts receivable (net) | 70,000 | ||||
| Inventory, December 31, 2016 | 45,000 | ||||
| Equipment and fixtures (net) | 97,000 | ||||
| Accounts payable | $34,000 | ||||
| Common stock | 120,000 | ||||
| Retained earnings | 30,000 | ||||
| Revenue - department a | 374,000 | ||||
| Revenue - department b | 146,000 | ||||
| Cost of goods sold - department a | 216,000 | ||||
| Cost of goods sold - department b | 70,000 | ||||
| Sales salaries expense | 80,000 | ||||
| Advertising expense | 37,000 | ||||
| Insurance expense (on merchandise) | 10,000 | ||||
| Uncollectible accounts expense | 3,000 | ||||
| Occupancy expense | 16,000 | ||||
| Office and other administrative expense | 40,000 | - | |||
| $704,000 | $704,000 | ||||
Stillwell analyzes its operating expenses at the end of each period in order to prepare an income statement that will exhibit departmental contribution to common expenses. From payroll records, advertising copy, and other records, the following tabulation was obtained:
| Traceable Expense | ||||||
|---|---|---|---|---|---|---|
| Dept. A | Dept. B | Common Expense | ||||
| Sales salaries expense | $50,000 | $22,000 | $8,000 | |||
| Advertising expense | 17,000 | 8,000 | 12,000 | |||
| Insurance expense | 8,000 | 2,000 | ||||
| Occupancy expense | 16,000 | |||||
| Uncollectible accounts expense | 2,000 | 1,000 | ||||
| Office and other administrative expense | 19,000 | 11,000 | 10,000 | |||
Prepare a departmental income statement for Stillwell Emporium, Inc., showing departmental contribution to common expenses, assuming an overall income tax rate of 30%.
Do not use negative signs with your answers below.
| Stillwell Emporium, Inc. Departmental Income Statement For the Year Ended December 31, 2016 | ||||||
|---|---|---|---|---|---|---|
| Dept. A | Dept. B | Total | ||||
| Sales | Answer | Answer | Answer | |||
| Cost of goods sold | Answer | Answer | Answer | |||
| Gross profit | Answer | Answer | Answer | |||
| Operating expenses: | ||||||
| Sales salaries expense | Answer | Answer | Answer | |||
| Advertising expense | Answer | Answer | Answer | |||
| Insurance expense | Answer | Answer | Answer | |||
| Uncollectible accounts expense | Answer | Answer | Answer | |||
| Office and other administrative expense | Answer | Answer | Answer | |||
| Traceable operating expenses | Answer | Answer | Answer | |||
| Contribution to common expenses | Answer | Answer | Answer | |||
| Common expenses | Answer | |||||
| Income before tax | Answer | |||||
| Income tax expense | Answer | |||||
| Net income | Answer | |||||
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Introduction To Management Accounting Chapters 1 To 14
Authors: Charles T Horngren, Gary L Sundem, William O Stratton, Dave Burgstahler, Jeff Schatzberg
15th Edition
0136102778, 9780136102779
