Problem 3 5A Preparing financial statements from the adjusted trial balance and calculating profit margin LO P3, A1, A2
[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 | ||
|
|
|
|
|
|||
|
|
||||||
references
1(c)
Prepare Chiara Company’s the balance sheet as of December 31, 2013.
2. Calculate the profit margin for year 2013