Item 2

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

	Debit	Credit
Cash	$ 178,900
Accounts receivable	50,500
Interest receivable	18,800
Notes receivable (due in 90 days)	170,000
Office supplies	17,000
Automobiles	168,000
Accumulated depreciationAutomobiles		$ 90,000
Equipment	144,000
Accumulated depreciationEquipment		20,000
Land	78,000
Accounts payable		97,000
Interest payable		15,000
Salaries payable		21,000
Unearned revenue		38,000
Long-term notes payable		146,000
R. Chiara, Capital		315,800
R. Chiara, Withdrawals	45,000
Services revenue		524,000
Interest revenue		36,000
Depreciation expenseAutomobiles	26,000
Depreciation expenseEquipment	18,000
Salaries expense	187,000
Wages expense	42,000
Interest expense	34,800
Office supplies expense	34,200
Advertising expense	58,000
Repairs expenseAutomobiles	32,600
Totals	$ 1,302,800	$ 1,302,800

Prepare the income statement for the year ended December 31.