The December $31,2026,$ adjusted account balances for the Cowboys Corporation are presented below.

AccountsBalanceCash$ $22,700$Accounts Receivable$330,000$Prepaid Rent$13,000$Inventory$51,000$Office Equipment$610,000$Accumulated Depreciation$254,000$Accounts Payable$72,000$Notes Payable $($due in $6$ months$)63,000$Salaries Payable$7,500$Interest Payable$2,100$Common Stock$400,000$Retained Earnings$150,000$Sales Revenue$750,000$Cost of Goods Sold$450,000$Salaries Expense$112,500$Rent Expense$39,000$Depreciation Expense$61,000$Interest Expense$4,200$Advertising Expense$5,200$

Required:

$1-$a$.$ Prepare an income statement for the year ended December $31,2026.$

$1-$b$.$ Prepare a classified balance sheet as of December $31,2026.$

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