Problem
A Preparing financial statements from the adjusted trial balance and calculating profit margin.
[The following information applies to the questions displayed below.]
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
|
1. Prepare Chiara Company's the balance sheet as of December 31, 2013.
2. Calculate the profit margin for year 2013
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.