The adjusted trial balance for Chiara Company as of December 31, 2018, follows.

Required

1. Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31, 2018; (b) the statement of retained earnings for the year ended December 31, 2018; and (c) the balance sheet as of December 31, 2018.

2. Compute the profit margin for year 2018 (use total revenues as the denominator).

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Credit Debit $ 30,000 Cash . Accounts receivable 52,000 Interest receivable . Notes receivable (due in 90 days) Office supplies .... 18,000 168,000 16,000 Automobiles. 168,000 $ 50,000 Accumulated depreciation-Automobiles Equipment .. Accumulated depreciation-Equipment . Land .. Accounts payable 138,000 18,000 78,000 96,000 Interest payable . 20,000 Salaries payable 19,000 Uneamed fees ... 30,000 Long-term notes payable 138,000 Common stock . 20,000 Retained earnings, December 31, 2017.. 235,800 Dividends . 46,000 Fees earned. 484,000 Interest earned 24,000 Depreciation expense-Automobiles 26,000 18,000 Depreciation expense-Equipment .... 188,000 Salaries expense Wages expense 40,000 32,000 Interest expense Office supplies expense Advertising expense 34,000 58,000 Repairs expense-Automobiles 24,800 $1.134,800 $1,134,800 Totals