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The adjusted trial balance for Chiara Company as of December 31 follows. Debit Credit Problem 3-5A Preparing financial statements from the adjusted trial balance and computing profit margin P6 A1 $ 30,000 52.000 18,000 168,000 16.000 168,000 $ 50,000 138.000 18.000 78,000 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 R. Chiara, Capital R. Chiara, Withdrawals Fees earned Interest earned Depreciation expense-Automobiles Depreciation expense-Equipment Starles expense Wages expense Interest expense Office Supplies expense Advertising expense Repairs expense-Automobiles Totals 96.000 20.000 19.000 30,000 138.000 255,800 46.000 484,000 24,000 26,000 18,000 188.000 40,000 32,000 34.000 58,000 24,800 $1,134,800 $1,134,800 Check (1) Total assets 5600.000 Required 1. Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31: (b) the statement of owner's equity for the year ended December 31 (Note: R. Chiara, Capital at December 31 of the prior year was $255,800); and (c) the balance sheet as of December 31. 2. Compute the profit margin for the year (use total revenues as the denominator)

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