The adjusted trial balance for Chiara Company as of December 31 follows.

	Debit	Credit
Cash	$ 171,400
Accounts receivable	50,500
Interest receivable	23,200
Notes receivable (due in 90 days)	169,000
Office supplies	16,500
Automobiles	166,000
Accumulated depreciationAutomobiles		$ 85,000
Equipment	136,000
Accumulated depreciationEquipment		22,000
Land	76,000
Accounts payable		96,000
Interest payable		20,000
Salaries payable		16,000
Unearned revenue		34,000
Long-term notes payable		148,000
Common stock		34,580
Retained earnings		311,220
Dividends	51,000
Services revenue		494,000
Interest revenue		34,000
Depreciation expenseAutomobiles	24,500
Depreciation expenseEquipment	18,000
Salaries expense	191,000
Wages expense	41,000
Interest expense	36,400
Office supplies expense	33,600
Advertising expense	63,500
Repairs expenseAutomobiles	27,200
Totals	$ 1,294,800	$ 1,294,800

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.