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.