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

Account Title	Debits		Credits
Cash	68,500
Accounts receivable	250,000
Prepaid rent	5,000
Inventory	35,000
Office equipment	450,000
Accumulated depreciation			190,000
Accounts payable			40,000
Notes payable (due in six months)			15,000
Salaries payable			6,000
Interest payable			500
Common stock			400,000
Retained earnings			70,000
Sales revenue			600,000
Cost of goods sold	360,000
Salaries expense	90,000
Rent expense	15,000
Depreciation expense	45,000
Interest expense	1,000
Advertising expense	2,000
Totals	1,321,500		1,321,500

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.