In 2012 Craig Gonzales opened Craig’s Pets, a small retail shop selling pet supplies. On December 31, 2012, Craig’s accounting records showed the following:
Inventory on December 31, 2012 .... $ 10,100
Inventory on January 1, 2012 ...... 15,400
Sales revenue ............ 58,000
Utilities for shop ............ 3,300
Rent for shop ............. 4,500
Sales commissions ........... 2,850
Purchases of merchandise ........ 26,000
Requirement
1. Prepare an income statement for Craig’s Pets, a merchandiser, for the year ended
December 31, 2012.