Exercise 2-12 (Algo) Financial statements and closing entries [LO2-7, 2-8] The December 31, 2021, adjusted trial balance for the Blueboy Cheese Corporation is presented below. Credits Debits 54,600 285,000 8,500 42,000 520,000 Account Title Cash Accounts receivable Prepaid rent Inventory office equipment Accumulated depreciation Accounts payable Notes payable (due in six months) Salaries payable Interest payable Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Advertising expense Totals 218,000 54,000 36,000 6, 700 1,200 400,000 110,000 670,000 402,000 100, 500 25,500 52,000 2,400 3,400 1,495,900 1,495,900 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