RCES ture Leve Near the end of its first year of operations, December 31, 2018, Creative Designs Ltd. approached the local bank for $22,000 loan and was asked to submit financial statements prepared on an accrual basis. Although the company kept no formal accounting records, it did maintain a record of cash receipts and payments. The following information is available for the year ended December 31 Cash Receipts Cash Payments Issue of common shares $ 24,000 Fees earned 158,200 Equipment $36,500 Supplies 8,000 Rent 20.500 Insurance 3.840 Income tax 5.900 Advertising 6.200 Salaries 59,600 Dividends declared 10,200 $182,200 $150,740 tudy Objective Additional Information: 1. Fees from design work earned but not yet collected amounted to $2,400 2. The equipment was purchased at the beginning of January and has an estimated six-year useful life. The company uses straight-line depreciation 3. Supplies on hand on December 31 were $1,330. 4. Rent payments included a $1,500 per month rental fee and a $2,500 deposit that is refundable at the end of the two-year lease. (Hint: Use the Prepaid Rent account for the refundable deposit.) 10:29 PM 06 AUNG 2020-05-30 2. The equipment was purcha 3. Supplies on hand on December 31 were $1,330. 4. Rent payments included a $1,500 per month rental fee and a $2,500 deposit that is refundable at the end of the two-year lease. (Hint: Use the Prepaid Rent account for the refundable deposit.) 5. The insurance was purchased on February 1 for a one-year period expiring January 31, 2019. 6. Salaries earned for the last four days in December and to be paid in January 2019 amounted to $3,150. 7. At year end, it was determined that an additional $7,500 is owed for income tax. Objective Prepare an accrual-based income statement for the year. (Round answers to o decimal places, e.g. 5,27. CREATIVE DESIGNS LTD. Income Statement jective