The December $31,2027,$ adjusted trial balance for the Blueboy Cheese Corporation is presented below.

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline Account Title & Debits & Credits $\backslash \backslash$

$\backslash$hline Cash & $\backslash$$ $54,600$ & $\backslash \backslash$

$\backslash$hline Accounts receivable & $285,000$ & $\backslash \backslash$

$\backslash$hline Prepaid rent & $8,500$ & $\backslash \backslash$

$\backslash$hline Inventory & $42,000$ & $\backslash \backslash$

$\backslash$hline Office equipment & $520,000$ & $\backslash \backslash$

$\backslash$hline Accumulated depreciation & & $\backslash$$ $218,000\backslash \backslash$

$\backslash$hline Accounts payable & & $54,000\backslash \backslash$

$\backslash$hline Notes payable $($due in six months$)$ & & $36,000\backslash \backslash$

$\backslash$hline Salaries payable & & $6,700\backslash \backslash$

$\backslash$hline Interest payable & & $1,200\backslash \backslash$

$\backslash$hline Common stock & & $400,000\backslash \backslash$

$\backslash$hline Retained earnings & & $110,000\backslash \backslash$

$\backslash$hline Sales revenue & & $670,000\backslash \backslash$

$\backslash$hline Cost of goods sold & $402,000$ & $\backslash \backslash$

$\backslash$hline Salaries expense & $100,500$ & $\backslash \backslash$

$\backslash$hline Rent expense & $25,500$ & $\backslash \backslash$

$\backslash$hline Depreciation expense & $52,000$ & $\backslash \backslash$

$\backslash$hline Interest expense & $2,400$ & $\backslash \backslash$

$\backslash$hline Advertising expense & $3,400$ & $\backslash \backslash$

$\backslash$hline Totals & $\backslash$$ $1,495,900$ & $\backslash$$ $1,495,900\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Required:

$1-$a$.$ Prepare an income statement for the year ended December $31,2027.$

$1-$b$.$ Prepare a classified balance sheet as of December $31,2027.$

$2.$ Prepare the necessary closing entries on December $31,2027.\backslash$begin$\{$tabular$\}\{|$l$||$l$|$l$|\}$

$\backslash$hline $\backslash (\backslash$operatorname$\{$Req$\}1\backslash$mathrm$\{$~A$\}\backslash )$ & $\backslash (\backslash$operatorname$\{$Req$\}1\backslash$mathrm$\{$~B$\}\backslash )$ & $\backslash (\backslash$operatorname$\{$Req$\}2\backslash )\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Prepare an income statement for the year ended December $31,2027.$

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|\}$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$BLUEBOY CHEESE CORPORATION$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Income Statement$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$For the Year Ended December $31,2027\}\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $0\backslash \backslash$

$\backslash$hline Operating expenses: & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline Total operating expenses & $0\backslash \backslash$

$\backslash$hline & $0\backslash \backslash$

$\backslash$hline Other expense: & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash$$ $0\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}\backslash$begin$\{$tabular$\}\{|$l$|$l$|\}$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$BLUEBOY CHEESE CORPORATION$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Balance Sheet$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$At December $31,2027\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Assets$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Current assets:$\}\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline Total current assets & $0\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Property and equipment:$\}\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $0\backslash \backslash$

$\backslash$hline Total assets & $\backslash$$ $0\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$c$|\}\{$Liabilities and Shareholders' Equity$\}\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Current liabilities:$\}\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline Total current liabilities & $0\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Shareholders$\text{'}$ equity:$\}\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline & $\backslash \backslash$

$\backslash$hline Total shareholders' equity & $0\backslash \backslash$

$\backslash$hline Total liabilities and shareholders' equity & $\backslash$$ $0\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|\}$

$\backslash$hline No & Date & General Journal & Debit & Credit $\backslash \backslash$

$\backslash$hline $1$ & December $31,2027$ & & & $\backslash \backslash$

$\backslash$hline & & & & $\backslash \backslash$

$\backslash$hline & & & & $\backslash \backslash$

$\backslash$hline $2$ & December $31,2027$ & & & $\backslash \backslash$

$\backslash$hline & & & & $\backslash \backslash$

$\backslash$hline & & & & $\backslash \backslash$

$\backslash$hline & & & & $\backslash \backslash$

$\backslash$hline & & & & $\backslash \backslash$

$\backslash$hline & & & & $\backslash \backslash$

$\backslash$hline & & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$