The December $31,2024,$ adjusted account balances for the Cowboys Corporation are presented below.

Accounts

Balance

Cash

$ $54,600$

Accounts Receivable

$285,000$

Prepaid Rent

$8,500$

Inventory

$42,000$

Office Equipment

$520,000$

Accumulated Depreciation

$218,000$

Accounts Payable

$54,000$

Notes Payable $($due in six months$)$

$36,000$

Salaries Payable

$6,700$

Interest Payable

$1,200$

Common Stock

$400,000$

Retained Earnings

$110,000$

Sales Revenue

$670,000$

Cost of Goods Sold

$402,000$

Salaries Expense

$100,500$

Rent Expense

$25,500$

Depreciation Expense

$52,000$

Interest Expense

$2,400$

Advertising Expense

$3,400$

Required:

$1-$a$.$Prepare an income statement for the year ended December $31,2024.$

$1-$b$.$Prepare a classified balance sheet as of December $31,2024.$

$2.$Transfer balances of temporary accounts to Retained Earnings and calculate its ending balance.

COWBOYS CORPORATION

Income Statement

For the Year Ended December $31,2024$

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$\backslash$end$\{$tabular$\}$ Transfer balances of temporary accounts to Retained Earnings and calculate its ending balance. Note: Amounts to be deducted should be indicated by a minus sign.Retained Earnings