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Based on the information provided in the Adjusted Trial Balance, we can complete the Income Statement. The relevant income and expense accounts from the trial balance are:

- **Service Revenue**: $4,200 (credit side)
- **Supplies Expense**: $600 (debit side)
- **Depreciation Expense**: $2,500 (debit side)
- **Rent Expense**: $2,400 (debit side)

Now, let’s organize the Income Statement for C.S. Financial Planners:

### C.S. Financial Planners  
**Income Statement for the Year Ended December 31, 2022**  

**Revenue:**  
- Service Revenue: $4,200  

**Expenses:**  
- Supplies Expense: $600  
- Depreciation Expense: $2,500  
- Rent Expense: $2,400  

**Total Expenses:** $5,500  

**Net Income (Loss):**  
- Net Loss: $$1,300$

This is a net loss since total expenses exceed revenue.

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### Related Questions:
1. What is the significance of depreciation expense in financial reporting?
2. How is "unearned service revenue" treated in financial statements?
3. Can a company survive with a consistent net loss? What strategies might be used?
4. How would retained earnings be affected by a net loss?
5. How does adjusting entries (e.g., supplies expense) affect the accuracy of financial statements?

**Tip:** Always verify that the debit and credit sides of the trial balance are equal before proceeding to prepare financial statements.

Understand how to create an income statement from an adjusted trial balance using C.S. Financial Planners' financial data for the year ended December 31, 2022. Key concepts include calculating service revenue and total expenses to determine net income or loss.

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