Question

The following onformation was obtained from the ledger of Woodfield Candies, Inc., at the end of 2016:

Woodfield analyzes its orperating 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:

Prepare a departmental income statement for Woodfield Candies, Inc., showing departmental contribution to common expenses, assuming an overall income tax rate of 35%.

 

debit

credit

cash

42 000

 

accounts receivable (net)

156 000

 

inventory, december 31, 2016

180 000

 

equipment and fixtures (net)

540 000

 

accounts payable

 

108 000

common stock

 

450 000

retained earnings

 

180 000

revenue- department X

 

840 000

revenue- department Y

 

360 000

cost of goods sold- department X

420 000

 

cost of goods sold- department Y

216 000

 

sales salaries expnese

192 000

 

advertising expense

42 000

 

insurance expense

24 000

 

uncollectible accounts expense

9 000

 

occupancy expense

36 000

 

office an other administrative expense

81 000

 

 

1 938 000

1 938 000

 

 

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