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	$	169,800
Accounts receivable		55,000
Interest receivable		19,000
Notes receivable (due in 90 days)		170,500
Office supplies		16,000
Automobiles		171,000
Accumulated depreciationAutomobiles				$	85,000
Equipment		146,000
Accumulated depreciationEquipment					24,000
Land		85,000
Accounts payable					97,000
Interest payable					20,000
Salaries payable					21,000
Unearned fees					32,000
Long-term notes payable					144,000
R. Chiara, Capital					305,800
R. Chiara, Withdrawals		55,000
Fees earned					564,000
Interest earned					36,000
Depreciation expenseAutomobiles		27,500
Depreciation expenseEquipment		19,500
Salaries expense		189,000
Wages expense		46,000
Interest expense		31,800
Office supplies expense		35,000
Advertising expense		63,500
Repairs expenseAutomobiles		29,200
Totals	$	1,328,800		$	1,328,800

Required: 1(a) Prepare the income statement for the year ended December 31, 2017. 1(b) Prepare the statement of owner's equity 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