Acct 211- prepare the income statement for the year ended

Question

Kendra Tate Assignment

Problems instructions

The adjusted trial balance for Chiara Company as of December 31, 2015, follows.

	Debit	Credit
Cash	85,400
Accounts receivable	52,500
Interest receivable	18,600
Notes receivable (due in 90 days)	171,000
Office supplies	15,500
Automobiles	168,000
Accumulated depreciation-Automobiles		75,000
Equipment	144,000
Accumulated depreciation-Equipment		20,000
Land	85,000
Accounts payable		93,000
Interest payable		45,000
Salaries payable		16,000
Unearned fees		40,000
Long-term notes payable		152,000
Common stock		53,160
Retained earnings		212,640
Dividends	45,000
Fees earned		474,000
Interest earned		38,000
Depreciation expense-Automobiles	26,000
Depreciation expense-Equipment	18,500
Salaries expense	185,000
Wages expense	42,000
Interest expense	33,200
Office supplies expense	35,400
Advertising expense	63,500
Repairs expense-Automobiles	30,200
Totals	1,218,800	1,218,800

Required:

1(a) Prepare the income statement for the year ended December 31, 2015.

1(b) Prepare the statement of owner's equity for the year ended December 31, 2015.

1(c) Prepare Chiara Company's balance sheet as of December 31, 2015.

2. Calculate the profit margin for year 2015.

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References

eBook & Resources

WorksheetLearning Objective: 03-A1 Compute profit margin and describe its use in analyzing company performance.

Difficulty: 3 HardLearning Objective: 03-P3 Prepare financial statements from an adjusted trial balance.

eBook: Compute profit margin and describe its use in analyzing company performance.eBook: Prepare financial statements from an adjusted trial balance.