Problem 3-4A (Algo) Preparing financial statements from the adjusted trial balance LO P5

The adjusted trial balance for Chiara Company as of December 31 follows.

	Debit	Credit
Cash	$ 159,100
Accounts receivable	54,000
Interest receivable	21,200
Notes receivable (due in 90 days)	169,000
Office supplies	16,500
Automobiles	169,000
Accumulated depreciationAutomobiles		$ 65,000
Equipment	142,000
Accumulated depreciationEquipment		21,000
Land	83,000
Accounts payable		101,000
Interest payable		20,000
Salaries payable		20,000
Unearned revenue		42,000
Long-term notes payable		152,000
Common stock		30,580
Retained earnings		275,220
Dividends	55,000
Services revenue		544,000
Interest revenue		26,000
Depreciation expenseAutomobiles	25,500
Depreciation expenseEquipment	21,000
Salaries expense	184,000
Wages expense	38,000
Interest expense	34,600
Office supplies expense	34,600
Advertising expense	63,500
Repairs expenseAutomobiles	26,800
Totals	$ 1,296,800	$ 1,296,800

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.