Preparing financial statements from the adjusted trial balance and calculating profit margin LO P3, A1, A2
| The adjusted trial balance for Chiara Company as of December 31, 2013, follows. |
|
Debit |
Credit |
| Cash |
$ |
30,000 |
|
|
|
|
| Accounts receivable |
|
52,000 |
|
|
|
|
| Interest receivable |
|
18,000 |
|
|
|
|
| Notes receivable (due in 90 days) |
|
168,000 |
|
|
|
|
| Office supplies |
|
16,000 |
|
|
|
|
| Automobiles |
|
168,000 |
|
|
|
|
| Accumulated depreciation%u2014Automobiles |
|
|
|
$ |
50,000 |
|
| Equipment |
|
138,000 |
|
|
|
|
| Accumulated depreciation%u2014Equipment |
|
|
|
|
18,000 |
|
| Land |
|
78,000 |
|
|
|
|
| Accounts payable |
|
|
|
|
96,000 |
|
| Interest payable |
|
|
|
|
20,000 |
|
| Salaries payable |
|
|
|
|
19,000 |
|
| Unearned fees |
|
|
|
|
30,000 |
|
| Long-term notes payable |
|
|
|
|
138,000 |
|
| R. Chiara, Capital |
|
|
|
|
255,800 |
|
| R. Chiara, Withdrawals |
|
46,000 |
|
|
|
|
| Fees earned |
|
|
|
|
484,000 |
|
| Interest earned |
|
|
|
|
24,000 |
|
| Depreciation expense%u2014Automobiles |
|
26,000 |
|
|
|
|
| Depreciation expense%u2014Equipment |
|
18,000 |
|
|
|
|
| Salaries expense |
|
188,000 |
|
|
|
|
| Wages expense |
|
40,000 |
|
|
|
|
| Interest expense |
|
32,000 |
|
|
|
|
| Office supplies expense |
|
34,000 |
|
|
|
|
| Advertising expense |
|
58,000 |
|
|
|
|
| Repairs expense%u2014Automobiles |
|
24,800 |
|
|
|
|
|
|
|
|
|
|
|
| Totals |
$ |
1,134,800 |
|
$ |
1,134,800 |
|
|
|
|
|
|
|
|
|
references
1(c) Prepare Chiara Company's the balance sheet as of December 31, 2013.
2. Calculate the profit margin for year 2013