The following trial balance was taken from the books of Coyote Company as of December 31, 2019.

Account Debit Credit

Cash $30,000

Accounts receivable 40,000

Allowance for doubtful accounts $ 1,000

S-T Notes receivable 20,000

Inventory, January 1, 2019 40,000

Furniture and equipment 110,000

Accumulated depreciation of F & E 20,000

Patents 100,000

Accounts payable 22,000

Bonds payable 20,000

L-T notes payable 15,000

Common stock 140,000

Retained earnings 40,000

Sales 550,000

Purchase 278,000

Insurance expense 20,000

Salary expense 120,000

Rent expense 50,000

Totals 808,000 808,000

At the year end, the following items have not been recorded.

1. Prepaid insurance expired during the year, $8,000.
2. Estimated bad debts, 1.0% of sales.
3. Inventory as of 12/31/2019 turned out to be $60,000.
4. Five months rent of $50,000 was paid in advance on October 1, 2019 and charged to rent expense then.
5. Furniture and equipment have an average useful life of 4 years and salvage value of $10,000. Coyote Company uses the straight-line method of depreciation.
6. Utility bill of $1,600 for the month of December 2019 will be paid on its due date, January 10, 2020.
7. Salaries earned but not yet paid by December 31, 2019, $7,000.

Instruction: prepare

1. Any necessary adjusting entries at the end of 2019.
2. Income Statement and statement of retained earnings, and balance sheet of the company for the year 2019.
3. Any necessary closing entries at the end of 2019.