Sales $3,400,000 $2,100,000 Contribution margin $1,500,000 $900,000 Divisional segment margin $1,000,000 $300,000 Net operating income last year for SegR-1882 Corporation was $550,000. In last year's income statement segmented by division, what were SegR-1882's total common fixed expenses

$750,000

Explanation:

Based on the information given, in last year's income statement segmented by division, SegR-1882's total common fixed expenses will be calculated thus:

Note that Net operating income = Total segment margin - Common fxed expenses

Therefore, Common fixed expense = Net operating income - Total segment margin

Common fixed expenses:

= $1,300,000 - $550,000

= $750,000

Therefore, common fixed expenses is $750,000

Note that total segment margin = $1,000,000 + $300,000 = $1,300,000

Dr Cash 884,171

Dr Discount on bonds payable 85,829

    Cr Bonds payable 970,000

Explanation:

Since the bonds were sold at a lower price than par value, they were sold at a discount. That discount on bonds payable = total face value - cash received when issuing the bonds = $970,000 - $884,171 = $85,829