Question

The December 31, 2021, adjusted trial balance for the Blueboy Cheese Corporation is presented Credits Debits 38,800 310,000 11,000 46,000 560,000 Account Title Cash Accounts receivable Prepaid rent Inventory Office equipment Accumulated depreciation Accounts payable Notes payable (due in six months Salaries payable Interest payable Common stock Retained earnings Sales revenue Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Advertising expense Totals les dernier 234,000 64,000 48,000 7,100 1,600 400,000 130,000 710,000 426,000 106,500 33,000 56,000 3,200 4,200 1,594,700 1,594,700 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. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Prepare an income statement for the year ended December 31, 2021.

Answer 1

A BLUEBOY CHEESE CORPORATION Income Statement For the Year Ended December 31,2021 $710.000 4 Revenues: 5 Sales revenue 6 Expenses: 7 Cost of goods sold 8 Salaries expense 9 Rent expense 10 Depreciation expense 11 Interest expense 12 Advertising expense 13 Total Expenses 14 Net income $426,000 $106,500 $33,000 $56,000 $3,200 $4.200 $628,900 $81,100

$38,800 $310,000 $11,000 $46,000 S405,800 BLUEBOY CHEESE CORPORATION 17 Balance Sheet 18 At December 31,2021 19 Assets 20 Current assets: 21 Cash 22 Accounts receivable 23 Prepaid rent 24 Inventory 25 Total current assets 26 Property, plant,and equipment: 27 Office equipment $560,000 28 Accumulated depreciation ($234.000 29 Total assets 30 Liabilities and shareholders' Equity 31 Current liabilities: 32 Accounts payable 33 Notes payable (due in six months) 34 Salaries payable 35 Interest payable 36 Total liabilities $326,000 $731,800 $64,000 $48,000 $7,100 $1,600 S120,700

37 Shareholders' Equity: 38 Common stock 39 Retained earnings (130,000+81100 net income) 40 Total shareholders' equity 41 Total liabilities and shareholders' equity $400,000 $211,100 5611,100 S731,800

44 Credit Debit $710,000 47 $710,000 50 $628,900 45 Date Particulars 46 December Sales revenue 202,021 Income Summary 48 To close revenue accounts 49 December |Income Summary 202,021 Cost of goods sold Salaries expense Rent expense Depreciation expense Interest expense Advertising expense [To close expenses accounts] 51 $426,000 $106,500 $33,000 $56,000 $3,200 $4,200