Question
The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit Cash $ 126,900 Accounts receivable 55,000 Interest receivable 20,000 Notes receivable
The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit Cash $ 126,900 Accounts receivable 55,000 Interest receivable 20,000 Notes receivable (due in 90 days) 171,500 Office supplies 17,000 Automobiles 166,000 Accumulated depreciationAutomobiles $ 95,000 Equipment 144,000 Accumulated depreciationEquipment 24,000 Land 86,000 Accounts payable 97,000 Interest payable 25,000 Salaries payable 16,000 Unearned fees 40,000 Long-term notes payable 148,000 Common stock 27,580 Retained earnings 248,220 Dividends 48,000 Fees earned 534,000 Interest earned 22,000 Depreciation expenseAutomobiles 27,500 Depreciation expenseEquipment 18,000 Salaries expense 192,000 Wages expense 40,000 Interest expense 37,600 Office supplies expense 34,000 Advertising expense 63,500 Repairs expenseAutomobiles 29,800 Totals $ 1,276,800 $ 1,276,800
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 $248,220]; and
(c) the balance sheet as of December 31.
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