What is correct or incorrect for the work you have completed so The December 31, 2021, adjusted trial balance for the Blueboy Cheese Corporation is presented below. Credits Debits 14,600 345,000 14,500 54,000 640,000 Account Title Cash Accounts receivable Prepaid rent Inventory Office equipment Accumulated depreciation Accounts payable Notes payable (due in six months) Salaries payable Interest payable Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Advertising expense Totals 266,000 78,000 72,000 7,800 2,400 400,000 165,000 780,000 468,000 117,000 43,500 64,000 4,800 5,800 1,771,200 1,771,200 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. Prepare an income statement for the year ended December 31, 202 BLUEBOY CHEESE CORPORATION Income Statement For the Year Ended December 31, 2021 $ 780,000 468,000 312,000 Sales revenue Cost of goods sold Gross profit Operating expenses Salaries expense Rent expense Advertising expense Depreciation expense 117,000 43,500 5,800 64,000 Total operating expenses Operating income 230,300 81,700 Interest expense 4,800 Net income $ 76,900 BLUEBOY CHEESE CORPORATION Balance Sheet At December 31, 2021 Assets Current assets Cash $ Accounts receivable Prepaid rent Inventory 14,600 345,000 14,500 54,000 Total current assets 428, 100 374,000 $ 802,100 Office equipment $ 640,000 Less: Accumulated depreciation (266,000) Total assets Liabilities and Shareholders' Equity Current liabilities Accounts payable Note payable Salaries payable Interest payable $ 78,000 72,000 7,800 2,400 Liabilities and Shareholders' Equity Current liabilities $ $ Accounts payable Note payable Salaries payable Interest payable 78,000 72,000 7,800 2,400 160,200 Total current liabilities Shareholders' equity Common stock Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $ 400,000 241,900 641,900 $ 802,100 Prepare the necessary closing entries at December 31, 2021. (If no entry is required fo journal entry required" in the first account field.) No Date General Journal 1 December 31, 202 Sales revenue Retained earnings 2 December 31, 202 Retained earnings Salaries expense Rent expense Depreciation expense Interest expense Advertising expense Cost of goods sold