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:
Commercial Division $912,250
Commercial Division $112,560
Administrative expenses:
Residential Division 423,675
Residential Division 67,830
Net sales:
Commercial Division $149,800
Commercial Division $1,354,500
Service department charges:
Residential Division 128,625
Residential Division 743,780

Prepare divisional income statements for Jersey Coast Construction Company for the year ended June 30, 20Y8.

Net Income   Commercial Division    $ 159,890

Net Income  Residential Division   $  123,650

Explanation:

Jersey Coast Construction Company

Divisional Income Statements

For the year ended June 30, 20Y8:

                                   Commercial Division        Residential Division

Sales                            $1,354,500                        743,780

Cost Of Goods Sold    $912,250                            423,675

Gross Profit                 $ 422,250                             320,105

Less

Service Deptt Charges   $112,560                         67,830

Administrative Charges$149,800                         128,625

Net Income                       $ 159,890                  $  123,650

**the data given in the question however has been mixed up some how**

The actual data in the book is as follows.

Cost of goods sold:

Commercial Division $912,250

Residential Division 423,675

Administrative expenses:

Commercial Division $149,800

Residential Division 128,625

Net sales:

Residential Division 743,780

Commercial Division $1,354,500

Service department charges:

Commercial Division $112,560

Residential Division 67,830

Note:The given solution is of the data given above.

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