The adjusted trial balance for Chiara Company as of December 31 follows. Credit Debit
Cash 182,200
Accounts receivable 51,500
Interest receivable 21,000
Notes receivable (due in 90 days) 169,000
Office supplies 15,500
Automobiles 175,000
Accumulated depreciation-Automobiles $ 70,000
Equipment 142,000
Accumulated depreciation-Equipment 19,000
Land 85,000
Accounts payable 98,000
Interest payable 50,000
Salaries payable 16,000
Unearned fees 30,000
Long-term notes payable 152,000
Common stock 33,580
Retained earnings 302,220
Dividends 48,000
Fees earned 524,000
Interest earned 34,000
Depreciation expense-Automobiles 27,500
Depreciation expense-Equipment 18,500
Salaries expense 190,000
Wages expense 44,000
Interest expense 36,200
Office supplies expense 35,800
Advertising expense 60,000
Repairs expense-Automobiles 27,600
Totals $1,328,800 $1,328,800
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 $230,220]; and
(c) the balance sheet as of December 31.