Chapter 3 Adjusting Accounts for Financial Statements ance. The adjusted trial balance for Chiara Company as of December 31, 2017, follows. alance Problem 3-5A Preparing financial statements from the adjusted trial balance and computing profit margin P3 A1 Debit Credit or the year $ 30,000 52.000 18,000 168,000 16.000 168.000 balance $ 50,000 138,000 18.000 78,000 Cash... Accounts receivable .... Interest receivable Notes receivable due in 90 days) ... Office supplies Automobiles Accumulated depreciation-Automobiles Equipment Accumulated depreciation-Equipment Land ... Accounts payable. Interest payable Salaries payable ... Unearned fees Long-term notes payable .. Common stock Retained earnings ... Dividends ..... Fees earned Interest earned Depreciation expense-Automobiles .... Depreciation expense-Equipment .. Salaries expense ... Wages expense Interest expense Office supplies expense ..... Advertising expense Repairs expense-Automobiles 96,000 20,000 19.000 30.000 138,000 20,000 235,800 46,000 484,000 24,000 26,000 18,000 188,000 40,000 32,000 34,000 58,000 24.800 $1,134,800 Totals ......... $1,134 800 Required 1. Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31, 2017; (b) the statement of retained earnings for the year ended December 31, 2017; and (C) the balance sheet as of December 31, 2017. 2. Compute the profit margin for year 2017 (use total revenues as the denominator). Check (1) Total assets, $600.000