Laidig Industries has prepared the following un-adjusted trial balance as of December 31, 2018:

ADDITIONAL INFORMATION:
1. A physical count of inventory on December 31, 2018, indicated that the company had $480,000 of inventory on hand.
2. An aging of accounts receivable indicates that $75,000 is uncollectible.
3. The company uses straight-line depreciation. The assets have a ten-year life and zero salvage value.
4. The company used a third of the remaining insurance policy during 2018.
5. The company pays interest for its bond payable on December 31 of every year. The coupon rate and the effective rate are both 10 percent per year.
6. The company€™s tax rate is 35 percent. All income tax charges are recorded at the end of the year.
7. 200,000 shares of common stock were outstanding during 2018.

REQUIRED:
Prepare the following:
a. The necessary adjusting and closing entries on December 31, 2018.
b. An income statement including recommended earnings-per-share disclosures.
c. A reconciliation of retained earnings.
d. In terms of the objectives of financial accounting, discuss the usefulness of the various measures of income included on the statement.

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Debit Credit $110,000 Cash Accounts receivable 340,000 $ 50,000 Allowance for doubtful accounts Inventory (balance 1/1/18) Prepaid insurance 467,000 60,000 Equipment Accumulated depreciation 850,000 287,000 Accounts payable Dividends payable Bonds payable 200,000 45,000 500,000 Common stock 100,000 Retained earnings 673,000 Sales 1,256,000 Gain on disposal of plant assets Loss on accounting change 76,000 95,000 Purchases 750,000 Selling and administrative expenses 355,000 Interest expense 25,000 Dividends 135,000