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

	Debit			Credit
Cash	$	185,900
Accounts receivable		54,500
Interest receivable		18,600
Notes receivable (due in 90 days)		171,000
Office supplies		15,500
Automobiles		169,000
Accumulated depreciationAutomobiles				$	70,000
Equipment		148,000
Accumulated depreciationEquipment					25,000
Land		86,000
Accounts payable					103,000
Interest payable					20,000
Salaries payable					18,000
Unearned fees					40,000
Long-term notes payable					150,000
Common stock					30,580
Retained earnings					275,220
Dividends		48,000
Fees earned					554,000
Interest earned					38,000
Depreciation expenseAutomobiles		25,000
Depreciation expenseEquipment		18,000
Salaries expense		184,000
Wages expense		46,000
Interest expense		35,600
Office supplies expense		33,800
Advertising expense		59,500
Repairs expenseAutomobiles		25,400
Totals	$	1,323,800		$	1,323,800

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 $275,220]; and (c) the balance sheet as of December 31.

Required A Required B Required Prepare the income statement for the year ended December 31. CHIARA COMPANY Income Statement For Year Ended December 31