In 2012 Craig Gonzales opened Craigs Pets, a small retail shop selling pet supplies. On December 31,
Question:
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.
2. What are the main differences between the income statement for a merchandising company and the income statement for a services company?
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura