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The December 31, 2024, adjusted trial balance for the Blueboy Cheese Corporation is presented below. Account Title Debits Credits Cash $ 55,000 Accounts receivable 275,000
The December 31, 2024, adjusted trial balance for the Blueboy Cheese Corporation is presented below.
Account Title | Debits | Credits |
---|---|---|
Cash | $ 55,000 | |
Accounts receivable | 275,000 | |
Prepaid rent | 7,500 | |
Inventory | 40,000 | |
Office equipment | 500,000 | |
Accumulated depreciation | $ 210,000 | |
Accounts payable | 50,000 | |
Notes payable (due in six months) | 30,000 | |
Salaries payable | 6,500 | |
Interest payable | 1,000 | |
Common stock | 400,000 | |
Retained earnings | 95,000 | |
Sales revenue | 650,000 | |
Cost of goods sold | 390,000 | |
Salaries expense | 97,500 | |
Rent expense | 22,500 | |
Depreciation expense | 50,000 | |
Interest expense | 2,000 | |
Advertising expense | 3,000 | |
Totals | $ 1,442,500 | $ 1,442,500 |
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.
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