College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Textbook Question
Chapter 25, Problem 9SPA
INCOME STATEMENT WITH DEPART MENTAL DIRECT OPERATING MARGIN AND TOTAL OPERATING INCOME Durwood Thomas operates the business Thomas Security that sells security equipment for commercial property and residential homes. The following information is provided for the year ended December 31, 20--:
REQUIRED
1. Prepare an income statement showing departmental direct operating margin and total operating income.
2. Calculate departmental direct operating margin percentages.
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Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values.
Pretax income
?
Gross profit
?
Allocated costs (uncontrollable)
$2,030
Labor expense
41,590
Sales
189,000
Research and development (uncontrollable)
320
Depreciation expense
18,000
Net income/(loss)
?
Cost of goods sold
119,070
Selling expense
1,250
Total expenses
?
Marketing costs (uncontrollable)
780
Administrative expense
700
Income tax expense (21% of pretax income)
?
Other expenses
310
A. Prepare the income statement to include all costs, but separate out uncontrollable costs using the above information. Round your answers to the nearest dollar.
BDS Enterprises
Income Statement
For the Year Ended December…
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values.
Pretax income
?
Gross profit
?
Allocated costs (uncontrollable)
$2,040
Labor expense
41,580
Sales
189,000
Research and development (uncontrollable)
310
Depreciation expense
16,000
Net income/(loss)
?
Cost of goods sold
119,070
Selling expense
1,250
Total expenses
?
Marketing costs (uncontrollable)
790
Administrative expense
700
Income tax expense (21% of pretax income)
?
Other expenses
330
A. Prepare the income statement using the above information. Round your answers to the nearest dollar.
BDS Enterprises
Income Statement
For the Year Ended Dec. 31, 20xx
Sales
$fill in the blank cde9000a3faf056_2
Cost of…
Financial information for BDS Enterprises for the year-ended December 31, 20xx, was gathered from an accounting intern, who has asked for your guidance on how to prepare an income statement format that will be distributed to management. Subtotals and totals are included in the information, but you will need to calculate the values.
Pretax income
?
Gross profit
?
Allocated costs (uncontrollable)
$2,035
Labor expense
41,590
Sales
189,000
Research and development (uncontrollable)
315
Depreciation expense
16,000
Net income/(loss)
?
Cost of goods sold
119,070
Selling expense
1,260
Total expenses
?
Marketing costs (uncontrollable)
780
Administrative expense
690
Income tax expense (21% of pretax income)
?
Other expenses
320
A. Prepare the income statement using the above information. Round your answers to the nearest dollar.
BDS Enterprises
Income Statement
For the Year Ended Dec. 31, 20xx
$fill in the blank cfa9a806dfac049_2
fill in…
Chapter 25 Solutions
College Accounting, Chapters 1-27
Ch. 25 - A department that incurs costs and generates...Ch. 25 - Departmental gross profit is the difference...Ch. 25 - Prob. 3TFCh. 25 - Direct expenses are operating expenses incurred...Ch. 25 - Departmental direct operating margin is the...Ch. 25 - A department that incurs costs but does not...Ch. 25 - The difference between a departments net sales and...Ch. 25 - Prob. 3MCCh. 25 - The difference between a departments gross profit...Ch. 25 - The difference between a departments gross profit...
Ch. 25 - Prob. 1CECh. 25 - Prob. 2CECh. 25 - Prob. 3CECh. 25 - Prob. 1RQCh. 25 - Prob. 2RQCh. 25 - Prob. 3RQCh. 25 - Prob. 4RQCh. 25 - Prob. 5RQCh. 25 - Prob. 6RQCh. 25 - Prob. 7RQCh. 25 - Prob. 8RQCh. 25 - Distinguish between departmental gross profit,...Ch. 25 - Prob. 10RQCh. 25 - GROSS PROFIT SECTION OF DE PART MENT AL INCO ME ST...Ch. 25 - ALLOCATING OPERATING EXPENSESQUARE FEET Weaverling...Ch. 25 - ALLOCATING OPERATING EXPENSERELATIVE NET SALES...Ch. 25 - ALLOCATING OPERATING EXPENSEMILES DRIVEN Mercado...Ch. 25 - COMPUTING OPERATING INCOME The sales, cost of...Ch. 25 - Prob. 6SEACh. 25 - INCOME STATEMENT WITH DEPART MENTAL GROSS PROFIT...Ch. 25 - INCOME STATE MENT WITH DEPARTMENTAL OPERATING...Ch. 25 - INCOME STATEMENT WITH DEPART MENTAL DIRECT...Ch. 25 - Prob. 10SPACh. 25 - GROSS PROFIT SECTION OF DEPART MENTAL INCOME...Ch. 25 - Prob. 2SEBCh. 25 - ALLOCATING OPERATING EXPENSERELATIVE NET SALES...Ch. 25 - ALLOCATING OPERATING EXPENSEMILES DRIVEN Herbert...Ch. 25 - Prob. 5SEBCh. 25 - Prob. 6SEBCh. 25 - INCOME STATEMENT WITH DEPART MENTAL GROSS PROFIT...Ch. 25 - Prob. 8SPBCh. 25 - Prob. 9SPBCh. 25 - Prob. 10SPBCh. 25 - Prob. 1MYWCh. 25 - Prob. 1ECCh. 25 - MASTERY PROBLEM Bobs Acme Supermarket has been in...Ch. 25 - CHALLENGE PROBLEM This problem challenges you to...
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