Laidig Industries has prepare the following unadjusted trial balance as of December 31,

ADDITIONAL INFORMATION1. A physical count of inventory on December 31, 2012, indicated that the company had $480,000 of inventory on hand.2. An aging of accounts receivable indicates that $75,000 is uncollectible.3. The company uses straight-line depreciation. The assets have a ten-year life and zero salvage value.4. The company used a third of the remaining insurance policy during 2012.5. The company pays interest of its bond payable on December 31 of every year. The coupon rate and the effective rate are both 10 percent per year.6. The company's tax rate is 35 percent. All income tax charges are recorded at the end of the year.7. 200,000 shares of common stock were outstanding during 2012.RequiredPrepare the following:(a) The necessary adjusting and closing entries on December 31, 2012.(b) An income statement including recommended earnings-per-share disclosures.(c) A reconciliation of retained earrings.(d) In terms of the objective of financial accounting, discussed the usefulness of the various measures of income included on the statement.

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Debit Credit Cash Accounts receivable SI10,000 340,000 S 50,000 Allowance for doubtful accounts Inventory (balance 1/1/12) Prepaid insurance Fixed assets 467,000 60,000 850,000 Accumulated depreciation Accounts payable Dividends payable Bonds payable Common stock Retained earnings Sales 287,000 200,000 45,000 500,000 100,000 673,000 1,256,000 76,000 Gain on sale of land Extraordinary loss Income effect due to change in accounting principle Purchases Administrative expenses Selling expenses Interest expense Dividends 35,000 60,000 750,000 100,000 255,000 25,000 135,000