1.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.