The adjusted trial balance as of December 31, 2021 for Blueboy Cheese Corporation is set forth below.

account title		Debts		Credits
Money		21,000
accounts receivable		300.000
prepaid rent		10,000
Inventory		50,000
Office team		600.000
Accumulated depreciation				250.000
Accounts payable				60.000
Notes payable (due in six months)				60.000
Salaries to pay				8,000
interest to pay				2,000
Common actions				400.000
Retained earnings				100,000
sales revenue				800.000
cost of goods sold		480.000
salary expenses		120,000
Rental costs		30,000
depreciation expense		60.000
Interest expenses		4,000
advertising expenses		5,000
Totals		1,680,000		1,680,000

Required:

1. Prepare an income statement for the year ended December 31, 2021 and a classified balance sheet as of December 31, 2021.

2. Prepare the necessary closing entries as of December 31, 2021.

Answer rating: 100% (QA)

To prepare the income statement for the year ended December 31 2021 we will use the following formula Net Income Sales Revenue Cost of Goods Sold Sala... View the full answer