ACG-2022 Financial Statement ProjectThe adjusted trial balancefor Chiara Company as ofDecember 31, 2013,followsDebitCash

ACG-2022 Financial Statement Project
The adjusted trial balance
for Chiara Company as of
December 31, 2013,
follows:
Debit
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
Salaries Expense
Wages Expense
Interest Expense
Office Supplies Expense
Advertising Expense
Repairs Expense – Automobile
Totals

30,000
52,000
18,000
168,000
16,000
168,000
138,000
78,000

46,000

26,000
18,000
188,000
40,000
32,000
34,000
58,000
24,800
$1,134,800

Required:
1. Use the information in the adjusted trial balance to prepare (a) the income statement for
the year ended December 31, 2013; (b) the statement of owner’s equity for the year
ended December 31, 2013; and (c) the balance sheet as of December 31, 2013.
2. Calculate the profit margin for year 2013.

 

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