Answer:
Explanation:
Before preparing the income statement, first, we have to compute the net income or net loss. So, the calculation is shown below:
In the simplest form, the net income = Total revenue - total expenses
= Service Revenue - interest expense - salaries expense - Advertising Expense
= $97,900 - $3,500 - $61,800 - $10,800
= $21,800
The preparation of the income statement, statement of stockholder's equity and the balance sheet are presented in the spreadsheet. Kindly find the attachment below: