The adjusted trial balance for Callahay Company as of December 31, 2011, follows. Debit Credit Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 22,000 Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . 44,000 Interest receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 0,000 Notes receivable (due in 90 days) . . . . . . . . . . . . . . . 1 60,000 Office supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000 Automobiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 60,000 Accumulated depreciation — Automobiles . . . . . . . . . $ 42,000 Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 30,000 Accumulated depreciation — Equipment . . . . . . . . . . 1 0,000 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,000 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88,000 Interest payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2,000 Salaries payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 ,000 Unearned fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000 Long-term notes payable . . . . . . . . . . . . . . . . . . . . . . 1 30,000 Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227,800 Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,000 Fees earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420,000 Interest earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 6,000 Depreciation expense—Automobiles . . . . . . . . . . . . 1 8,000 Depreciation expense—Equipment . . . . . . . . . . . . . . 1 0,000 Salaries expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 80,000 Wages expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,000 Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,000 Office supplies expense . . . . . . . . . . . . . . . . . . . . . . . 26,000 Advertising expense . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 Repairs expense — Automobiles . . . . . . . . . . . . . . . . . 1 6,800 Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $998,800 $998,800 Required 1. Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31, 2011; (b) the statement of retained earnings for the year ended December 31, 2011; and (c) the balance sheet as of December 31, 2011. 2. Calculate the profit margin for year 2011. Check (1 ) Total assets, $552,000