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

	Debit	Credit
Cash	$ 161,000
Accounts receivable	55,000
Interest receivable	19,800
Notes receivable (due in 90 days)	170,000
Office supplies	17,000
Automobiles	173,000
Accumulated depreciationAutomobiles		$ 45,000
Equipment	140,000
Accumulated depreciationEquipment		21,000
Land	79,000
Accounts payable		101,000
Interest payable		25,000
Salaries payable		24,000
Unearned revenue		40,000
Long-term notes payable		146,000
Common stock		33,580
Retained earnings		302,220
Dividends	54,000
Services revenue		544,000
Interest revenue		24,000
Depreciation expenseAutomobiles	26,000
Depreciation expenseEquipment	22,500
Salaries expense	184,000
Wages expense	45,000
Interest expense	32,000
Office supplies expense	35,400
Advertising expense	59,500
Repairs expenseAutomobiles	32,600
Totals	$ 1,305,800	$ 1,305,800

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

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