The following was taken from the books of Coyote Company as of December 31, 2017.

account	debit	credit
cash	$30,000
accounts receivable	40,000
allowance for doubtful accounts		2,000
S-T Notes receivable	19,000
inventory, January 1, 2017	50,000
prepaid insurance	20,000
furniture and equipment	100,000
accumulated depreciation of F&E		40,000
patents	110,000
accounts payable		12,000
bonds payable		20,000
L-T notes payable		10,000
common stock		40,000
retained earnings		140,000
sales		360,000
purchase	149,000
salary expense	50,000
rent expense	56,000
totals	624,000	624,000

a. Prepaid insurance expired during the year, $11,000.

b. Estimated bad debts, 1.0% of sales.

c. Inventory as of 12/31/2017 turned out to be $40,000.

d. Four month rent of $56,000 was paid in advance on October 1, 2017 and charged to rent expense then. 4 months From Oct. 2017 to Jan 2018.

e. Furniture and equipment have an average useful life of 5 years and no salvage value. Coyote Company uses the straight line method of depreciation.

f. Utility bill of $600 for the month of December 2017 will be paid on its due date, January 10, 2018: a missing record.

g. Salaries earned but not yet paid by December 31, 2017, $6,000.

Instruction: prepare

1. Any necessary adjusting entries at the end of 2017.

2. Income Statement and statement of retained earnings, and balance sheet of the company for the year 2017.

3. Any necessary closing entries at the end of 2017.