The December $31,2024,$ adjusted trial balance for the Blueboy Cheese Corporation is presented below.

Account Title Debits Credits

Cash $ $21,000$

Accounts receivable $300,000$

Prepaid rent $10,000$

Inventory $50,000$

Office equipment $600,000$

Accumulated depreciation $ $250,000$

Accounts payable $60,000$

Notes payable $($due in six months$)60,000$

Salaries payable $8,000$

Interest payable $2,000$

Common stock $400,000$

Retained earnings $100,000$

Sales revenue $800,000$

Cost of goods sold $480,000$

Salaries expense $120,000$

Rent expense $30,000$

Depreciation expense $60,000$

Interest expense $4,000$

Advertising expense $5,000$

Totals $ $1,680,000$ $ $1,680,000$

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 $31,2024.$

Answer rating: 100% (QA)

1a Income Statement for the year ended December 31 2024 Sales revenue 800000 Cost of goods sold 4800... View the full answer