The December 31, 2018, adjusted trial balance for the Blueboy Cheese Corporation is presented below.

Account TitleDebits Credits

Cash14,600

Accounts receivable345,000

Prepaid rent14,500

Inventory54,000

Office equipment640,000

Accumulated depreciationoffice equipment 266,000

Accounts payable 78,000

Note payable (due in six months) 72,000

Salaries payable 7,800

Interest payable 2,400

Common stock 400,000

Retained earnings 165,000

Sales revenue 780,000

Cost of goods sold468,000

Salaries expense117,000

Rent expense43,500

Depreciation expense64,000

Interest expense4,800

Advertising expense5,800

Totals1,771,200 1,771,200

Required: 1-a. Prepare an income statement for the year ended December 31, 2018. 1-b. Prepare a classified balance sheet as of December 31, 2018. 2. Prepare the necessary closing entries at December 31, 2018.