Question

The December 31, 2021, adjusted trial balance for the Blueboy Cheese Corporation is presented below. 

Required: 

1-a. Prepare an income statement for the year ended December 31, 2021. 

1-b. Prepare a classified balance sheet as of December 31, 2021. 

2. Prepare the necessary closing entries at December 31, 2021. Answer is not complete. Complete this question by entering your answers in the tabs below.

Answer 1

Closing Entries 30 Date General Journal Debit Credit 31 12/31/2021 Sales Revenue 32 630000 Income Summary 33 630000 34 12/31/2021 Income Summary 35 544200 Cost of Goods Sold 36 378000 Advertising Expense 2600 37 Salaries expense 38 94500 Rent expense 39 19500 Depreciation expense 40 48000 Interest expense 41 1600 42 12/31/2021 Income Summary 43 85800 Retained Earnings 44 85800 45

47 BLUEBOY CHEESE CORPORATION 48 Income Statement For the Year Ended December 31,2021 49 Sales Revenue 50 630000 Cost of Goods Sold 378000 Gross Profit 52 252000 Operating Expenses Advertising Expense 53 54 2600 Salaries expense 55 94500 Rent expense 56 19500 Depreciation expense 57 48000 Total Operating expenses 164600 58 Operating Income 59 87400 Interest expense 1600 60 85800 61 Net Income 62

63 BLUEBOY CHEESE CORPORATION Balance Sheet 64 At December 31,2021 65 66 Assets 67 Current Assets Cash 68 60400 Accounts Receivable 69 265000 70 Prepaid Rent 6500 71 Inventory 38000 Total Current Assets 72 369900 Office Equipment 73 480000 Less Accumulated Depreciation 278000 74 -202000 Total Assets 75 647900 Liabilities and Shareholder's Equity 76 Current liabilities 77 Accounts Payable Notes Payable Salaries Payable 78 46000 79 24000 80 6300 Interest Payable 81 800 Total Current Liabilities 77100 82 Shareholder's Equity 83 Common Stock 84 400000 Retained Earnings 85 170800 Total Shareholder's Equity Total liabilities and Shareholder's Equity 86 570800 87 647900