Preparing financial statements from the adjusted trial balance The adjusted trial balance for Chiara Company as of December 31, 2008, follows.

Required Use the information in the adjusted trial balance to prepare

(a) the income statement for the year ended December 31, 2008;

(b) the statement of owner’s equity for the year ended December 31, 2008; and

(c) the balance sheet as of December 31, 2008.

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Debit Credit Cash Accounts receivable $ 30,000 52,000 Interest receivable 18.000 Notes receivable (due in 90 days) 168.000 Office supplies 16.000 Automobiles 168,000 Accumulated depreciation-Automobiles $ 50,000 Equipment 138,000 Accumulated depreciation-Equipment 18,000 Land 78,000 Accounts payable 126,000 Interest payable 20,000 Salaries payable 19.000 Long-term notes payable 138,000 R. Chiara, Capital 255,800 R. Chiara, Withdrawals 46,000 Fees earned. 484,000 Interest earned 24,000 Depreciation expense-Automobiles 26,000 Depreciation expense-Equipment 18,000 Salaries expense.... 188,000 Wages expense 40,000 Interest expense 32,000 Office supplies expense 34,000 Advertising expense 58,000 Repairs expense-Automobiles Totals 24,800 $1,134,800 $1,134,800