In 2007, Clyde Blackstock opened Clyde’s Pets, a small retail shop selling pet supplies. On December 31, 2007 Clyde’s accounting records showed the following:
Merchandise inventory at December 31, 2007 $10,250
Merchandise inventory at January 1, 2007 $15,000
Sales revenue for year $54,000
Utilities for shop $3,000
Rent for shop $3,000
Sales commissions $2,250
Purchases of merchandise $27,000
Q. 1. Part 1. Prepare an income statement for Clyde’s Pets, a merchandiser, for the year ended December 31, 2007. You may use the template below. Hint: You will need to calculate Cost of Goods Sold (COGS).