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Question

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

 

 

Debit Credit

Cash $89,300    

Accounts receivable  53,000    

Interest receivable  23,200    

Notes receivable (due in 90 days)  169,000    

Office supplies  16,500   

Automobiles  172,000    

Accumulated depreciation—Automobiles    $105,000 

Equipment  138,000    

Accumulated depreciation—Equipment    25,000 

Land  78,000    

Accounts payable     91,000 

Interest payable     30,000 

Salaries payable     16,000 

Unearned fees     30,000 

Long-term notes payable     148,000 

Common stock     25,580 

Retained earnings     230,220 

Dividends  46,000    

Fees earned     494,000

 Interest earned     30,000 

Depreciation expense—Automobiles  25,500    

Depreciation expense—Equipment  18,500    

Salaries expense  187,000    

Wages expense  44,000    

Interest expense  34,000   

 Office supplies expense  33,400    

Advertising expense  65,000    

Repairs expense—Automobiles  32,400    


Totals $1,224,800  $1,224,800 


Required:

Use the information in the adjusted trial balance to make

(1) the income statement for the year ended December 31;

(2) the statement of retained earnings for the year ended December 31 [Note: Retained Earnings at December 31 of the prior year was $230,220]; and

(3) the balance sheet as of December 31. 

Top Answer

1. Profit before tax for the year ending December 31 amounts to $84,200 . 2. Closing... View the full answer

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