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Natalie had a very busy December. At the end of the month, after journalizing and posting the December transactions and adjusting entries, Natalie prepared the following adjusted trial balance.

COOKIE CREATIONS
Adjusted Trial Balance
December 31, 2021
Debit
Credit
Cash
$1,230
Accounts Receivable
910
Supplies
360
Prepaid Insurance
1,260
Equipment
1,200
Accumulated Depreciation—Equipment
$40
Accounts Payable
80
Salaries and Wages Payable
58
Interest Payable
15
Unearned Service Revenue
310
Notes Payable
2,100
Owner’s Capital
830
Owner’s Drawings
520
Service Revenue
4,623
Salaries and Wages Expense
1,046
Utilities Expense
130
Advertising Expense
170
Supplies Expense
1,065
Depreciation Expense
40
Insurance Expense
110
Interest Expense
15
$8,056
$8,056

Using the information in the adjusted trial balance, do the following.
(a1)
Prepare an income statement for the 2 months ended December 31, 2021. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

COOKIE CREATIONS
Income Statement
choose the accounting period
For the Year Ended December 31, 2021

select an opening name for section one
Total Expenses
enter an income statement item
total expenses
$enter a dollar amount
8056
select an opening name for section two
Total Revenues
enter an income statement item
Total revenues
$enter a dollar amount
8056
enter an income statement item
enter a dollar amount
enter an income statement item
enter a dollar amount
enter an income statement item
enter a dollar amount
enter an income statement item
enter a dollar amount
enter an income statement item
enter a dollar amount
enter an income statement item
enter a dollar amount
select a closing name for section two
enter a total amount for section two
select a closing name for this statement
$enter a total net income or loss amount
eTextbook and Media
List of Accounts
Attempts: 0 of 3 used
(a2)
(a3)
(b)
(c)

Respuesta :

The preparation of the Income Statement for COOKIE CREATIONS for the year ended December 31, based on the adjusted Trial Balance, is as follows:

COOKIE CREATIONS

Income Statement

For the year ended December 31,

Service Revenue                                   $4,623

Expenses:

Salaries and Wages Expense 1,046

Utilities Expense                         130

Advertising Expense                  170

Supplies Expense                   1,065

Depreciation Expense                40

Insurance Expense                     110

Interest Expense                          15   $2,576

Net income                                        $2,047

What is an income statement?

An income statement is a financial statement that summarizes a company's revenue and expenses in order to determine the net income or loss.

Income statements are usually prepared based on the adjusted trial balance at the end of a financial period.

Data and Calculations:

COOKIE CREATIONS

Adjusted Trial Balance

December 31, 2021

                                                   Debit      Credit

Cash                                          $1,230

Accounts Receivable                    910

Supplies                                        360

Prepaid Insurance                      1,260

Equipment                                  1,200

Accumulated

Depreciation—Equipment                         $40

Accounts Payable                                         80

Salaries and Wages Payable                       58

Interest Payable                                            15

Unearned Service Revenue                      310

Notes Payable                                         2,100

Owner’s Capital                                         830

Owner’s Drawings                                    520

Service Revenue                                   4,623

Salaries and Wages Expense 1,046

Utilities Expense                         130

Advertising Expense                  170

Supplies Expense                   1,065

Depreciation Expense                40

Insurance Expense                     110

Interest Expense                          15

Totals                                  $8,056 $8,056

Thus, the preparation of COOKIE CREATIONS' Income Statement shows a net income of $2,047.

Learn more about preparing income statements at https://brainly.com/question/24498019