2BHW 5.

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

Account Title	Debits		Credits
Cash	22,700
Accounts receivable	330,000
Prepaid rent	13,000
Inventory	51,000
Office equipment	610,000
Accumulated depreciation			254,000
Accounts payable			72,000
Notes payable (due in six months)			63,000
Salaries payable			7,500
Interest payable			2,100
Common stock			400,000
Retained earnings			150,000
Sales revenue			750,000
Cost of goods sold	450,000
Salaries expense	112,500
Rent expense	39,000
Depreciation expense	61,000
Interest expense	4,200
Advertising expense	5,200
Totals	1,698,600		1,698,600

Required: 1-a. Prepare an income statement for the year ended December 31, 2021. 1-b. Prepare a classified balance sheet as of December 31, 2021. 2. Prepare the necessary closing entries at December 31, 2021.