Required information

Problem 3-5A Preparing financial statements from the adjusted trial balance and computing profit margin LO P3, A1, A2

[The following information applies to the questions displayed below.] The adjusted trial balance for Chiara Company as of December 31, 2017, follows.

	Debit			Credit
Cash	$	180,100
Accounts receivable		50,500
Interest receivable		21,600
Notes receivable (due in 90 days)		170,500
Office supplies		15,500
Automobiles		168,000
Accumulated depreciationAutomobiles				$	50,000
Equipment		136,000
Accumulated depreciationEquipment					18,000
Land		87,000
Accounts payable					102,000
Interest payable					45,000
Salaries payable					24,000
Unearned fees					28,000
Long-term notes payable					152,000
Common stock					30,580
Retained earnings					275,220
Dividends		48,000
Fees earned					554,000
Interest earned					38,000
Depreciation expenseAutomobiles		27,500
Depreciation expenseEquipment		18,000
Salaries expense		189,000
Wages expense		39,000
Interest expense		37,000
Office supplies expense		34,800
Advertising expense		64,500
Repairs expenseAutomobiles		29,800
Totals	$	1,316,800		$	1,316,800

Problem 3-5A Part 1

Required: 1(a) Prepare the income statement for the year ended December 31, 2017. 1(b) Prepare the statement of retained earnings for the year ended December 31, 2017. 1(c) Prepare Chiara Company's balance sheet as of December 31, 2017.

Problem 3-5A Part 2

2. Calculate the profit margin for year 2017.