The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit
Cash $69,000
Accounts receivable 54,000
Interest receivable 22,000
Notes receivable (due in 90 days)170,500
Office supplies 16,500
Automobiles 171,000
Accumulated depreciation—Automobiles $70,000
Equipment 142,000
Accumulated depreciation—Equipment 20,000
Land 86,000
Accounts payable 103,000
Interest payable 25,000
Salaries payable 23,000
Unearned fees 30,000
Long-term notes payable 146,000
Common stock 28,580
Retained earnings 257,220
Dividends 46,000
Fees earned 484,000
Interest earned 22,000
Depreciation expense—Automobiles 25,000
Depreciation expense—Equipment 18,000
Salaries expense 191,000
Wages expense 42,000
Interest expense 36,400
Office supplies expense 33,200
Advertising expense 59,000
Repairs expense—Automobiles 27,200
Totals $ 1,208,800 $ 1,208,800
Required:
Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31; (b) the statement of retained earnings for the year ended December 31 [Note: Retained Earnings at December 31 of the prior year was $257,220]; and (c) the balance sheet as of December 31.