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

Account Title	Debits		Credits
Cash	17,300
Accounts receivable	340,000
Prepaid rent	14,000
Inventory	53,000
Office equipment	630,000
Accumulated depreciation			262,000
Accounts payable			76,000
Notes payable (due in six months)			69,000
Salaries payable			7,700
Interest payable			2,300
Common stock			400,000
Retained earnings			160,000
Sales revenue			770,000
Cost of goods sold	462,000
Salaries expense	115,500
Rent expense	42,000
Depreciation expense	63,000
Interest expense	4,600
Advertising expense	5,600
Totals	1,747,000		1,747,000

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.