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ll uepartment? P1-3B. Departmental Income Statement The following information was obtained from the ledger of LO4 Stillwell Emporium, Inc., at the end of 2016: STILLWELL
ll uepartment? P1-3B. Departmental Income Statement The following information was obtained from the ledger of LO4 Stillwell Emporium, Inc., at the end of 2016: STILLWELL EMPORIUM, INC. Trial Balance December 31, 2016 Debit Credit Cash $ 18,000 70,000 45,000 97,000 Inventory, December 31, 2016 Equipment and fixtures (net) . Accounts payable. Common stock. Retained earnings Sales-department a Sales-department Cost of goods sold-department a Cost of goods sold-department b... s 34,000 120,000 30,000 360,000 140,000 Sales salaries expense Advertising expense Insurance expense (on merchandise).... Uncollectible accounts expense.... Occupancy expense. Office and other administrative expense. 216,000 70,000 74,000 31,000 10,000 3,000 16,000 34,000 $684,000 $684,000 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, ad vertising copy, and other records, the following tabulation was obtained: Traceable Expense Common Dept. A Dept. B Expense .$48,000 $20,000 $6,000 Sales salaries expense. . Advertising expense. Insurance expense 15,000 6,000 10,000 8,000 2,000 16,000 Uncollectible accounts expense Office and other administrative expense...... .2.000 1,000 9,000 17,000 8,000 Required a departmental income statement for Stillwell Emporium, Inc., showing mon expenses, assuming an overall income tax rate of 30%
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