On December 31, 20X1, the Income Statement section of the worksheet is shown below. The balance of Ally Logan’s drawing account is $28,000. INCOME STATEMENT COLUMNS ACCOUNT NAME DEBIT CREDIT Income Summary $ 59,000 $ 65,000 Sales 230,000 Sales Returns and Allowances 5,700 Interest Income 720 Purchases 83,000 Freight In 3,500 Purchases Returns and Allowances 2,500 Purchases Discounts 3,100 Sales Salaries Expense 49,000 Office Salaries Expense 19,700 Office Supplies Expense 820 Utilities Expense 4,700 Payroll Taxes Expense 2,300 Uncollectible Accounts Expense 2,400 Depr. Expense - Office Equipment 700 Totals 230,820 301,320 Net Income 70,500 $ 301,320 $ 301,320 Prepare the closing entries that should be made in the general journal.

In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?