Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 3-5A Preparing financial statements from the adjusted trial balance and computing profit margin LO P3, A1, A2 [The following information applies to the questions
Problem 3-5A Preparing financial statements from the adjusted trial balance and computing profit margin LO P3, A1, A2
[The following information applies to the questions displayed below.] The adjusted trial balance for Chiara Company as of December 31, 2017, follows.
Debit | Credit | |||||
Cash | $ | 30,000 | ||||
Accounts receivable | 52,000 | |||||
Interest receivable | 18,000 | |||||
Notes receivable (due in 90 days) | 168,000 | |||||
Office supplies | 16,000 | |||||
Automobiles | 168,000 | |||||
Accumulated depreciationAutomobiles | $ | 50,000 | ||||
Equipment | 138,000 | |||||
Accumulated depreciationEquipment | 18,000 | |||||
Land | 78,000 | |||||
Accounts payable | 96,000 | |||||
Interest payable | 20,000 | |||||
Salaries payable | 19,000 | |||||
Unearned fees | 30,000 | |||||
Long-term notes payable | 138,000 | |||||
Common stock | 20,000 | |||||
Retained earnings | 235,800 | |||||
Dividends | 46,000 | |||||
Fees earned | 484,000 | |||||
Interest earned | 24,000 | |||||
Depreciation expenseAutomobiles | 26,000 | |||||
Depreciation expenseEquipment | 18,000 | |||||
Salaries expense | 188,000 | |||||
Wages expense | 40,000 | |||||
Interest expense | 32,000 | |||||
Office supplies expense | 34,000 | |||||
Advertising expense | 58,000 | |||||
Repairs expenseAutomobiles | 24,800 | |||||
Totals | $ | 1,134,800 | $ | 1,134,800 | ||
Problem 3-5A Part 1
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started