Problem 3-4A Preparing financial statements from the adjusted trial balance LO P6 The adjusted trial balance for Chiara Company as of December 31 follows. Cash Debit $ 138,900 Credit 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 55,500 19,000 171,000 16,500 173,000 $ 65,000 144,000 25,000 80,000 104,000 35,000 20,000 Unearned fees 30,000 Long-term notes payable 144,000 Common stock 34,580 Retained earnings 311,220 Dividends 54,000 Fees earned 494,000 Interest earned 26,000 Depreciation expense-Automobiles 26,000 Depreciation expense-Equipment 21,500 Salaries expense 190,000 Wages expense 42,000 Interest expense 34,600 Office supplies expense 33,400 Advertising expense 64,000 Repairs expense-Automobiles 25,400 Totals $1,288,800 $1,288,800 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 $311,220]; and (c) the balance sheet as of December 31.