Required information 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. Credit Debit $ 164,800 51,500 21,200 172,500 16,500 173,000 $ 55,000 146,000 23,000 78,000 Cash 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 Unearned fees Long-term notes payable Common stock Retained earnings Dividends Fees earned Interest earned Depreciation expense-Automobiles Depreciation expense-Equipment Salaries expense Wages expense Interest expense Office supplies expense Advertising expense Repairs expense-Automobiles Totals 94,000 45,000 16,000 44,000 156,000 32,580 293, 220 49,000 524,000 20,000 25,000 19,500 183,000 43,000 37,400 34,400 59,000 29,000 $1,302,800 $1,302,800 Prepare the income statement for the year ended December 31, 2017. CHIARA COMPANY Income Statement For Year Ended December 31, 2017 Revenues Fees earned $ 524,000 Total revenues $ 524,000 Expenses Repairs expense-Automobiles Office supplies expense Salaries expense Depreciation expenseAutomobiles Interest expense Advertising expense Wages expense Depreciation expense-Equipment 29,000 34,400 183,000 25,000 37,400 59,000 43,000 19,500 430,300 Total expenses Net income Prepare the statement of retained earnings for the year ended December 31, 2017. CHIARA COMPANY Statement of Retained Earnings For Year Ended December 31, 2017 Retained earnings, December 31, 2016 $ Add: Net income 293,220 Less: Dividends Retained earnings, December 31, 2017 293,220 49,000 244,220 $ Prepare Chiara Company's balance sheet as of December 31, 2017. CHIARA COMPANY Balance Sheet December 31, 2017 0 0 $ 0 0 0 0