The December 31, 2021, adjusted trial balance for the Blueboy Cheese Corporation is presented below.

Required:1. Prepare an income statement for the year ended December 31, 2021, and a classified balance sheet as of December 31, 2021.2. Prepare the necessary closing entries at December 31, 2021.

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Account Title Debits Credits Cash 21,000 Accounts receivable 300,000 Prepaid rent 10,000 Inventory 50,000 Office equipment Accumulated depreciation Accounts payable Notes payable (due in six months) Salaries payable Interest payable Common stock 600,000 250,000 60,000 60,000 8,000 2,000 400,000 100,000 800,000 Retained earnings Sales revenue Cost of goods sold Salaries expense 480,000 120,000 Rent expense 30,000 Depreciation expense 60,000 Interest expense 4,000 Advertising expense 5,000 1,680,000 Totals 1,680,000