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

	Debit	Credit
Cash	$ 255,500
Accounts receivable	53,500
Interest receivable	20,200
Notes receivable (due in 90 days)	169,500
Office supplies	15,500
Automobiles	166,000
Accumulated depreciationAutomobiles		$ 80,000
Equipment	136,000
Accumulated depreciationEquipment		27,000
Land	85,000
Accounts payable		103,000
Interest payable		50,000
Salaries payable		22,000
Unearned revenue		34,000
Long-term notes payable		152,000
Common stock		35,580
Retained earnings		320,220
Dividends	48,000
Services revenue		534,000
Interest revenue		22,000
Depreciation expenseAutomobiles	26,500
Depreciation expenseEquipment	19,000
Salaries expense	189,000
Wages expense	45,000
Interest expense	32,800
Office supplies expense	33,200
Advertising expense	58,500
Repairs expenseAutomobiles	26,600
Totals	$ 1,379,800	$ 1,379,800

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 $320,220]; and (c) the balance sheet as of December 31.