Scenario: You were recently hired by a $35 million manufacturing company ($35 million in sales) as the company staff accountant. The Controller (your boss) has asked you to explain (A) closing entries to the accounting clerk. The goal being the accounting clerk can independently complete the closing entries at year- end. (A) Prepare step-by-step instructions for the accounting clerk to follow at year-end. The instructions should provide both the how and the why so the accounting clerk learns not only how to complete closing entries but also learns why the closing entries must be made. 1. Incorporate the trial balance below into your set of instructions. Debit Credit Cash 16,550,000$ Accounts Receivable 19,000,000 Allowance for Doubtful Accounts 2,750,000$ Inventory 700,000 Prepaid Insurance - Misc. Receivables 110,000 Equipment 13,750,000 Building 2,800,000 Land 800,000 Accumulated Depreciation: Equipment 5,825,000 Accumulated Depreciation: Building 1,100,000 Accounts Payable 8,300,000 Income Tax Payable 5,430,000 Notes Payable (Short-Term) 4,000,000 Dividends Payable 1,100,000 Commissions Payable 1,000,000 Mortgage Payable (Long-Term) 2,770,000 Common Stock Par 0.10$ 280,000 Additional Paid-In Capital 10,000,000 Retained Earnings 5,800,000 Dividends 1,100,000 Sales (Revenue) 35,000,000 Rent Revenue 110,000 Cost of Goods Sold 14,000,000 Selling Expense 6,200,000 Administrative Expense 3,075,000 Interest Expense 200,000 Loss on Disposition of Equipment 450,000 Income Tax Expense 4,730,000 83,465,000$ 83,465,000$ 2. In addition to incorporating the trial balance into your instructions, the Controller has instructed you to include the following concepts/questions into your instruction manual: How does the accountant know that the Retained Earnings balance of $5.8 million is the balance as of the beginning of the year? Using the balances provided in the trial balance, how could a quick addition/subtraction exercise on your calculator provide net income? Explain the closing process utilizing the income summary account. In addition to the journal entries, provide T accounts for the income summary account and the retained earnings account in your explanation. Note: You are preparing an instruction manual. You are NOT simply answering the suggested questions. The suggested questions are provided to give you some structure on how to approach writing your manual.