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

	Debit			Credit
Cash	$	146,200
Accounts receivable		55,000
Interest receivable		21,800
Notes receivable (due in 90 days)		171,000
Office supplies		15,500
Automobiles		172,000
Accumulated depreciationAutomobiles				$	50,000
Equipment		140,000
Accumulated depreciationEquipment					17,000
Land		77,000
Accounts payable					103,000
Interest payable					40,000
Salaries payable					24,000
Unearned fees					30,000
Long-term notes payable					146,000
Common stock					32,580
Retained earnings					293,220
Dividends		54,000
Fees earned					514,000
Interest earned					24,000
Depreciation expenseAutomobiles		25,500
Depreciation expenseEquipment		18,500
Salaries expense		183,000
Wages expense		41,000
Interest expense		36,000
Office supplies expense		33,600
Advertising expense		58,500
Repairs expenseAutomobiles		25,200
Totals	$	1,273,800		$	1,273,800

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 $293,220]; and (c) the balance sheet as of December 31.

Prepare the income statement for the year ended December 31.

Prepare the statement of retained earnings for the year ended December 31. [Note: Retained Earnings at December 31 of the prior year was $293,220.]

Prepare Chiara Company's balance sheet as of December 31.