On January 1, 2013, Lindsay Owens opened Picture Perfect, a small retail store that sells picture frames, crafts & art. On June 30, 2014, her accounting records show the following:Store rent$7,000Sales revenue$90,000Sales salaries4,500Store utilities1,950Freight in600Purchase of merchandise36,000Inventory on June 30, 20149,600Inventory on January 1, 201412,000Advertising expense2,300 Prepare an income statement for Picture Perfect, a merchandiser, for the period ended June 30, 2014.

Income statement is a statement which records the revenue and expenses of an undertaking for a…

Answered: On January 1, 2013, Lindsay Owens…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2013, Lindsay Owens opened Picture Perfect, a small retail store that sells picture frames, crafts & art. On June 30, 2014, her accounting records show the following:

Store rent	$7,000	Sales revenue	$90,000
Sales salaries	4,500	Store utilities	1,950
Freight in	600	Purchase of merchandise	36,000
Inventory on June 30, 2014	9,600	Inventory on January 1, 2014	12,000
Advertising expense	2,300

Prepare an income statement for Picture Perfect, a merchandiser, for the period ended June 30, 2014.

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