Question

Assignments: ACCTG 001: Intro Accounting - Meintosh - FALL 2020 - SECTION 12243 Chapter 03 Conne Saved 6. The adjusted trial balance for Chiara Company as of December 31 follows. Cash Credit 11.11 points $ Debit 169,200 54,500 21,600 171,500 16,500 171,000 eBook $ Print 65,000 134,000 References 19,000 86,000 Accounts receivable Interest receivable Notes receivable (due in 90 days) office supplies Automobiles Accumulated depreciation Automobiles Equipment Accumulated depreciation-Equipment Land Recounts 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 98,000 20,000 19.000 30,000 152,000 33,580 302,220 47.000 534,000 36,000 27,500 21,000 191,000 39,000 34,600 35,400 63,000 26,000 $1,308,800 $1,308,800

Answer 1

Preparion of Income Statement

Chiara Company
Income Statement
For the Year Ended December 31
Fees Earned		534,000.00
Operaring Expenses
-Wages Expenses	39,000.00
-Salries Expenses	191,000.00
-Interst Expenses	34,600.00
- office Supplies Expense	35,400.00
-Advertising Expense	63,000.00
-Repair Expenses - Automobile	26,000.00
- Depreiation - Automobile	27,500.00
- Depreciation - Equipment	21,000.00
Total Operating Expense		437,500.00
Operating Income		96,500.00
Non Operating Income
- Interest Earned	36,000.00
Total Non - Operating Income		36,000.00
Income Befor Tax		$ 132,500.00

Calculation of Retained Earnings

Chiara Company
Statement of retained Earnings
For the Year Ended December 31
Retained Earnings at Beginning		302,220.00
Add:
Net Income	132,500.00	132,500.00
		434,720.00
Less:
Dividend	47,000.00	47,000.00
Retained Earnings		$ 387,720.00

Preparation Of Balance Sheet

Chiara Company
Balance Sheet
For the Year Ended December 31
Assets
Current Assets
Cash		169,200.00
Accounts Receivables		54,500.00
Interest Receivable		21,600.00
Note Receivable (Due in 90 days)		171,500.00
Office Supplies		16,500.00
Total Current Assets			433,300.00
Fixed Assets
Automobiles	171,000.00
Less:Accumulated Depreciation	65,000.00	106,000.00
Equipment	134,000.00
Less:Accumulated Depreciation	19,000.00	115,000.00
Land		86,000.00
Total Fixed Assets			307,000.00
Total Assets			$ 740,300.00
Liabilities
Current Liabilities
Account Payable		98,000.00
Interest Payable		20,000.00
Salries Payable		19,000.00
Unearned Fees		30,000.00
Total Current Liabilities			167,000.00
Non Current Liabilities
Long term Note Payable		152,000.00
Total Non Current Liabilities			152,000.00
Equity
Retained Earnings		387,720.00
Common Stock		33,580.00
Total Equity			421,300.00
Total Liabilities			$ 740,300.00