The following trial balance was taken from the books of COYOTE Co. on Dec. 31, 2014.

Account Debit Credit

Cash $10,000

Accounts receivable 40,000

Allowance for doubtful accounts $ 2,000

Prepaid insurance 20,000

Inventory, January 1, 2014 50,000

Furniture and equipments 250,000

Accumulated depreciation 120,000

Patents 60,000

Copyrights 40,000

Accounts payable 68,000

Bonds payable 100,000

Common stock 60,000

Retained earnings 20,000

Dividends 30,000

Sales 400,000

Rental revenue 50,000

Purchase 260,000

Loss on sale of discontinued operation 20,000

Salary expense 70,000

Rent expense 30,000

Totals 850,000 850,000

At the yearend, the following items have not been recorded.

Insurance expense accrued during the year, $15,000.

Estimated bad debts expense for 2014 is $3000.

Six month rent of $30,000 was paid in advance on September 1, 2014 and charged to rent expense then.

d. Inventory as of December 31, 2014, $90,000 (using periodic inventory procedure).

Furniture and equipment have an average useful life of 4 years and salvage value of $10,000. Use the straight line method.

Utility bill of $1,000 for the month of December 2014 will

be paid on its due date, January 10, 2015.

Office salaries accrued but not yet paid by December 31, 2014 are $3,000.

Instruction:

Prepare any necessary adjusting entries.

Prepare income statement, statement of retained earnings, & balance sheet of COYOTE Company for the year 2014.

Prepare closing entries of COYOTE for the year 2014.

Presume the above trial balance is an adjusted trial balance, and prepare

Multiple step income statement and

Multiple step balance sheet.