The December $31,2024,$ adjusted trial balance for the Blueboy Cheese Corporation is presented below.

Account Title Debits Credits

Cash $ $11,900$

Accounts receivable $350,000$

Prepaid rent $15,000$

Inventory $55,000$

Office equipment $650,000$

Accumulated depreciation $ $270,000$

Accounts payable $80,000$

Notes payable $($due in six months$)75,000$

Salaries payable $7,900$

Interest payable $2,500$

Common stock $400,000$

Retained earnings $170,000$

Sales revenue $790,000$

Cost of goods sold $474,000$

Salaries expense $118,500$

Rent expense $45,000$

Depreciation expense $65,000$

Interest expense $5,000$

Advertising expense $6,000$

Totals $ $1,795,400$ $ $1,795,400$

Required:

$1-$a$.$ Prepare an income statement for the year ended December $31,2024.$

$1-$b$.$ Prepare a classified balance sheet as of December $31,2024.$

$2.$ Prepare the necessary closing entries on December $31,2024.$