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 57,700 270,000 7,000 39,000 490,000 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 206,000 48,000 27,000 6,400 900 400,000 90,000 640,000 384,000 96,000 21,000 49,000 1,800 2,800 1,418,300 1,418,300 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