Problem 2

Required information The following information applies to the questions displayed below) The adjusted trial balance for Chiara Company as of Decermber 31, 2017, follows. Debit Credit Accounts receivable Interest receivable Sotes receivable (due in 90 days) office suppl $105,200 54,000 19,800 172,000 16,000 171,000 ics Accumlated depreciation Autonobiles Equipment Accumlated depreciation Equipment $ 85,000 144,000 16,000 83,000 Accounts payable Interest payable Salaries payable Unearned fees Long-term notes payable Common stock Retained earnings 106,000 20,000 23,000 32,000 142,000 28,580 257,220 52,000 524,000 26,000 Fee earned Interest carned Depreciation Depreciation expense Equipment Salarics expense Wages expense Interest expense Office supplies expense Advertising expense 26,000 21,000 191,000 45,000 34,000 33, 800 62,000 $1,259,800 1,259, 800 Required: 1(a) Prepare the income statement for the year ended December 31, 2017. 1(b) Prepare the statement of retained earnings for the year ended December 31, 2017. 1(c) Prepare Chiara Company's balance sheet as of December 31, 2017