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