The following data were summarized from the accounting records for Endless River Construction Company for the year ended June 30, 2014:

The following data were summarized from the accounting records for Endless River Construction Company for the year ended June 30, 2014:

Cost of goods sold:                      |   Service department charges:
Commercial Division $732,200  |   Commercial Division $  
Residential Division 338,940      |   Residential Division 54,264
Administrative expenses:            |   Net sales:
Commercial Division $119,840  |   Commercial Division $1,083,600
Residential Division 102,900      |   Residential Division 595,000

Prepare divisional income statements for Endless River Construction Company.


Answer:

ENDLESS RIVER CONSTRUCTION COMPANY 
Divisional Income Statements 
For the Year Ended June 30, 2014 
 Commercial 
Division 
Residential 
Division 
Net sales $1,083,600 $595,000 
Cost of goods sold 732,200 338,940 
Gross profit $   351,400 $256,060 
Administrative expenses 119,840 102,900 
Income from operations before service   
department charges $   231,560 $153,160 
Service department charges 90,048 54,264 
Income from operations $   141,512 $  98,896