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

Debit Credit

Cash $ 101,700

Accounts receivable 50,500

Interest receivable 23,000

Notes receivable (due in 90 days) 170,000

Office supplies 15,500

Automobiles 174,000

Accumulated depreciationAutomobiles $ 85,000

Equipment 136,000

Accumulated depreciationEquipment 28,000

Land 85,000

Accounts payable 97,000

Interest payable 25,000

Salaries payable 17,000

Unearned revenue 30,000

Long-term notes payable 150,000

Common stock 28,580

Retained earnings 257,220

Dividends 51,000

Services revenue 484,000

Interest revenue 34,000

Depreciation expenseAutomobiles 27,000

Depreciation expenseEquipment 18,500

Salaries expense 184,000

Wages expense 40,000

Interest expense 35,200

Office supplies expense 34,200

Advertising expense 65,000

Repairs expenseAutomobiles 25,200

Totals $ 1,235,800 $ 1,235,800

Required:

Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31; (b) the statement of retained earnings for the year ended December 31 [Note: Retained Earnings at December 31 of the prior year was $257,220]; and (c) the balance sheet as of December 31.

The adjusted trial balance for Chiara Company as of December 31 foliows. Required: Complete this question by entering your answers in the tabs below, Prepare the income statement for the year ended December 31