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Required information Problem 3-5A Preparing financial statements from the adjusted trial balance and computing profit margin LO P6, A1 [The following information applies to the

Required information

Problem 3-5A Preparing financial statements from the adjusted trial balance and computing profit margin LO P6, A1

[The following information applies to the questions displayed below.] The adjusted trial balance for Chiara Company as of December 31 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
R. Chiara, Capital 255,800
R. Chiara, Withdrawals 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. 1(b) Prepare the statement of owner's equity for the year ended December 31. [Note: R. Chiara, Capital at Dec. 31 of the prior year was $255,800.] 1(c) Prepare Chiara Company's balance sheet as of December 31.

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