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

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 $302,220]; and (c) the balance sheet as of December 31.

\begin{tabular}{lrr} Cash & \multicolumn{1}{c}{ Debit } & Credit \\ Accounts receivable & 185,900 & \\ Interest receivable & 56,000 & \\ Notes receivable (due in 90 days) & 22,200 & \\ Office supplies & 171,000 & \\ Automobiles & 15,500 & \\ Accumulated depreciation-Automobiles & 174,000 & \\ Equipment & 140,000 & 65,000 \\ Accumulated depreciation-Equipment & & \\ Land & 78,000 & 26,000 \\ Accounts payable & & 94,000 \\ Interest payable & & 15,000 \\ Salaries payable & & 21,000 \\ Unearned revenue & & 46,000 \\ Long-term notes payable & & 148,000 \\ Common stock & & 33,580 \\ Retained earnings & & 302,220 \\ Dividends & 49,000 & 554,000 \\ Services revenue & & 26,000 \\ Interest revenue & & \\ Depreciation expense-Automobiles & 26,500 & \\ Depreciation expense-Equipment & 20,500 & \\ Salaries expense & 189,000 & \\ Wages expense & 46,000 & \\ Interest expense & 34,000 & \\ Office supplies expense & 34,800 & \\ Advertising expense & 59,000 & \\ Repairs expense-Automobiles & 29,400 & \\ Totals & $1,330,800 & $1,330,800 \\ \hline \end{tabular}