Question

Divisional Income Statements

The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 20Y8:

Cost of goods sold:				Service department charges:
	Commercial Division	$431,280			Commercial Division	$58,810
	Residential Division	219,560			Residential Division	38,030
Administrative expenses:				Net sales:
	Commercial Division	$78,410			Commercial Division	$653,450
	Residential Division	78,410			Residential Division	392,070

Prepare divisional income statements for DeSalvo Construction Company.

JERSEY COAST CONSTRUCTION COMPANY
Divisional Income Statements
For the Year Ended June 30, 20Y8
	Commercial Division	Residential Division
	$	$
	$	$
	$	$
	$	$

Answer 1

	Commercial	Residential
Sales	$653,450	$392,070
Less: Cost Of Goods Sold	$431,280	$219,560
Gross Profit	$222,170	$172,510
Less: Administration Expenses	-$78,410	-$78,410
Income From Operation Before Service Deprartment Charges	$143,760	$94,100
Less: Service Department Charges	-$58,810	-$38,030
Income From Operation	$84,950	$56,070