The following selected account balances(pre-adjusted)are taken from the ledger book of ABC company at Decmber 31,2012:

Cash $2000

accounts receivable $13000

Allowance for uncollectible accounts $3200(credit balance)

Inventory Dec 31 2012 $22000

Long-term investments $30000

Buildings(at cost) $45000

Accumulated depreciation for buildings $26000(credit balance)

Other assets $12800

Accounts payable $8000

Taxes payable $4400

Loans payable $15000

Capital stock $40000

Retained Earnings,Dec 31 2012 $28000

Retained Earnings,Jan 1,2012 $???

Dividends,2012 $???

Sales revenues $98000

Cost of goods sold $42000

Selling expense $6000

Wages and salary expense $12500

Uncollectible accounts expense $400

Miscellaneous general and administrative expenses $11000

Office supplies expense $5400

Insurance expense $4800

Interest revenue $800

Interest expense $2200

Additional information(to be used for adjusting entries)

a the allowance for uncollectible accounts should be increased to $3800

baccrued wages and salary(not paid)at the end of 2012 were $450

c buildings are depreciated at the rate of 4%(of cost)per year(depreciation is recognized at the end of each year)

d accrued selling expense(not paid)at the end of 2012 was $600

e prepaid(unexpired)insurance premium at the end of the year was $420(when insurance premiums are paid,the company charges them to the insurance expense account)

f accrued interest on loans, not paid at the end of 2012 was $188

g earned interest on long-term investment,not received as of the end of 2012,was $1000

h office supplies unused as of the end of 2012 were $350(when office supplies are purchased, the company charges the amount of the supplies to the office supplies expenses account)

Required:

1 prepare the necessary adjusting entries for each of the additional information items above

2 compute the adjusted balance of each balance sheet account in the adjusting entries above.Notice that allowance for uncollectibles and accumulated depreciation are reported on the balance sheet.

3 compute the pre-tax income of the company for 2012(after considering the adjusting entries above)