Question

The adjusted trial balance for Chiara Company as of December 31 follows. Credit $ Debit 225,800 56,000 22,600 172,500 16,000 166,000 $ 90,000 138,000 23,000 80,000 Cash Accounts receivable Interest receivable Notes receivable (due in 90 days) Office supplies Automobiles Accumulated depreciation-Automobiles Equipment Accumulated depreciation Equipment Land Accounts payable Interest payable Salaries payable Unearned fees Long-term notes payable Common stock Retained earnings Dividends Fees earned Interest earned Depreciation expense-Automobiles Depreciation expense-Equipment Salaries expense Wages expense Interest expense Office supplies expense Advertising expense Repairs expense-Automobiles Totals 93,000 15,000 24,000 44,000 156,000 31,580 284, 220 50,000 564,000 38,000 27,000 18,500 188,000 42,000 36,200 33,600 62,000 28,600 $1,362,800 $1,362,800 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 $284,220]; 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

Answer 1

Income Statement
Revenues:
Fees earned	564,000
Interest earned	38,000
Total Revenues	602,000
Expenses:
Office supplies expense	-33,600
Repairs expense - Automobiles	-28,600
Depreciation expense- Automobiles	-27,000
Depreciation expense- Equipment	-18,500
Wages expense	-42,000
Interest expense	-36,200
Salary expense	-188,000
Advertisement expense	-62,000
Total expenses	-435,900
Net Income	$166,100

Statement of Retained Earnings
Beginning retained earnings	284,220
Net Income	166,100
	$450,320
Dividends	-50,000
Retained earnings, Ending	$400,320

Balance Sheet
Assets	Amount	Liabilities + Stockholders Equity	Amount
Current Assets:		Current Liabilities:
Cash	225,800	Accounts payable	93,000
Accounts receivable	56,000	Unearned fee	44,000
Note receivable	172,500	Salaries payable	24,000
Office supplies	16,000	Interest payable	15,000
Interest receivable	22,600	Total Current Liabilities	176,000
Total Current Assets	492,900	Long term note payable	156,000
Plant,Assets :		Total Liabilities	332,000
Automobiles                             166,000		Stockholders Equity:
Less:Accumulated Depreciation -90,000	76,000	Common stock	31,580
Equipment                                  138,000		Retained earnings	400,320
Less:Accumulated Depreciation-23,000	115,000	Total stockholders equity	431,900
Land	80,000
Total Plant Assets	271,000
Total Assets	$763,900	Total Liabilities & Stockholders Equity	$763,900

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