The adjusted trial balance for Chiara Company as of December 31
follows.
Debit
Credit
Cash
$
204,700
Accounts receivable
52,000
Interest receivable
21,400
Notes receivable (due in 90 days)
171,000
Office supplies
17,000
Automobiles
167,000
Accumulated depreciationAutomobiles
$
85,000
Equipment
140,000
Accumulated depreciationEquipment
18,000
Land
77,000
Accounts payable
106,000
Interest payable
25,000
Salaries payable
25,000
Unearned fees
34,000
Long-term notes payable
154,000
Common stock
30,580
Retained earnings
275,220
Dividends
52,000
Fees earned
554,000
Interest earned
34,000
Depreciation expenseAutomobiles
24,500
Depreciation expenseEquipment
19,500
Salaries expense
191,000
Wages expense
45,000
Interest expense
34,000
Office supplies expense
35,600
Advertising expense
61,500
Repairs expenseAutomobiles
27,600
Totals
$
1,340,800
$
1,340,800
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 $275,220]; and (c) the balance sheet as of December
31.
Prepare the income statement for the year ended December 31.
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