The December 31, 2021, 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, 2021. 1-b. Prepare a classified balance sheet as of December 31, 2021. 2. Prepare the necessary closing entries at December 31, 2021.