Prepare an income statement for picture perfect

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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

Problem 1: Prepare an income statement for Picture Perfect, a merchandiser, for the period ended June 30, 2014.

Reference no: EM132640084

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