Departmental Income Statement
The following information was obtained from the ledger of Woodfield Candies, Inc., at the end of 2016
| Cash |
$43,000 |
| 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 |
847,000 |
| Revenue - department Y |
362,000 |
| Cost of goods sold - department X |
420,000 |
| Cost of goods sold - department Y |
216,000 |
| Sales salaries expense |
194,000 |
| Advertising expense |
45,000 |
| Insurance expense |
24,000 |
| Uncollectible accounts expense |
9,000 |
| Occupancy expense |
36,000 |
| Office and other administrative expense |
84,000 |
|
| $1,947,000 |
$1,947,000 |
Woodfield 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:
| Sales salaries expense |
$148,000 |
$46,000 |
| Advertising expense |
19,000 |
7,000 |
$19,000 |
| Insurance expense |
15,000 |
9,000 |
| Uncollectible accounts expense |
6,000 |
3,000 |
| Occupancy expense |
36,000 |
| Office and other administrative expense |
13,000 |
10,000 |
61,000 |
Prepare a departmental income statement for Woodfield Candies, Inc., showing departmental contribution to common expenses, assuming an overall income tax rate of 35%.
Do not use negative signs with your answers below.