Question

The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 2016:

Cost of goods sold:
Commercial Division	$912,000
Residential Division	439,875
Administrative expenses:
Commercial Division	$149,400
Residential Division	129,575
Service department charges:
Commercial Division	$113,760
Residential Division	67,830
Sales:
Commercial Division	$1,364,500
Residential Division	750,060

Prepare divisional income statements for Jersey Coast Construction Company. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Amount Descriptions
Administrative expenses
Cost of goods sold
Gross profit
Income from operations
Income from operations before service department charges
Sales
Selling expenses
Service department charges
Transportation expenses

Prepare divisional income statements for Jersey Coast Construction Company. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

JERSEY COAST CONSTRUCTION COMPANY

Divisional Income Statements

For the Year Ended June 30, 2016

1		Commercial Division	Residential Division
2
3
4
5
6
7
8

Answer 1

Preparation of divisional income statement is as follows:-