The adjusted trial balance for Chiara Company as of December 31 follows. Cash Accounts receivable Interest receivable Debit $ 171,700 53,000 19,200 Credit Notes receivable (due in 90 days) office supplies Automobiles Accumulated depreciation-Automobiles Equipment Accumulated depreciation-Equipment Land Accounts payable Interest payable Salaries payable 172,000 16,000 174,000 $ 50,000 136,000 26,000 83,000 96,000 30,000 23,000 Unearned fees 38,000 Long-term notes payable 154,000 Common stock 28,580 Retained earnings 257,220 Dividends 46,000 Fees earned 584,000 Interest earned 20,000 Depreciation expense-Automobiles 26,500 Depreciation expense-Equipment 18,500 Salaries expense 185,000 Wages expense Interest expense Advertising expense 44,000 32,400 office supplies expense Repairs expense-Automobiles 34,800 62,500 32,200 Totals $1,306,800 $1,306,800 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 $257,220]; and (c) the balance sheet as of December 31. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare Chiara Company's balance sheet as of December 31. 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 $257,220]; and (c) the balance sheet as of December 31. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare the income statement for the year ended December 31. CHIARA COMPANY Income Statement For Year Ended December 31 Revenues Fees earned Interest earned $ 584,000 20,000 Total revenues Expenses Depreciation expense-Automobiles 26,500 Accumulated depreciation-Equipment 18,500 Salaries expense 185,000 Wages expense 44,000 Interest expense 32,400 Office supplies expense 34,800 Advertising expense 62,500 Repairs expense-Automobiles 32,200 Total expenses Net income $ 604,000 FARHAGEN ORGAN 435,900 $ 168,100 Depreciation expense-Equipment 18,500 Salaries expense 185,000 Wages expense 44,000 Interest expense 32,400 office supplies expense 34,800 Advertising expense 62,500 Repairs expense-Automobiles Totals 32,200 $1,306,800 $1,306,800 Required: Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31, (b) th statement of retained earnings for the year ended December 31 [Note: Retained Earnings at December 31 of the prior year $257,220]; and (c) the balance sheet as of December 31. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare the statement of retained earnings for the year ended December 31. [Note: Retained Earnings at December 31 of the prior year was $257,220.] CHIARA COMPANY Statement of Retained Earnings For Year Ended December 31 Retained earnings, Dec. 31 prior year end Add: Net income $ 257,220 168,100 425,320 Less: Dividends (46,000) Retained earnings, Dec. 31 current year end $ 379,320 < Required A Required C > Required A Required B Required C Prepare Chiara Company's balance sheet as of December 31. CHIARA COMPANY Balance Sheet December 31 Assets Cash Accounts receivable Interest receivable Notes receivable $ 171,700 53,000 19,200 172,000 Office supplies 16,000 Depreciation expense-Equipment $ 136,000 Depreciation expense Automobiles (26,000) 110,000 Depreciation expense-Automobiles 174,000 Accumulated depreciation-Equipment (50,000) 124,000 Land 83,000 Total assets $ 748,900 Liabilities Accounts payable $ 96,000 Interest payable 30,000 Salaries payable 23,000 Unearned fees Long-term notes payable 38,000 154,000 Common stock Retained earnings Total liabilities Equity 28,580 379,320 341,000 407,900 $ 748,900