Question

The December 31, 2021, adjusted trial balance for the Blueboy Cheese Corporation is presented below. Account Title Debits Credits Cash 14,600 Accounts receivable 345,000 Prepaid rent 14,500 Inventory 54,000 Office equipment 640,000 Accumulated depreciation 266,000 Accounts payable 78,000 Notes payable (due in six months) 72,000 Salaries payable 7,800 Interest payable 2,400 Common stock 400,000 Retained earnings 165,000 Sales revenue 780,000 Cost of goods sold 468,000 Salaries expense 117,000 Rent expense 43,500 Depreciation expense 64,000 Interest expense 4,800 Advertising expense 5,800 Totals 1,771,200 1,771,200 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 1

please refer below attachments for Answers

La encome statement of Blueboy cheese corporation For the year ended December 31, 2021 particolars Amount Sales revenue 780,000 Less: cost of goods sold (468.000) Gross poolt 312,000 Less: Eseper ses Salaries Expenese 117,000 Rest Expense 43,500 Depreciation Expense 64,000 Interest Exyense 4.800 Ad veslising Expose - S, 806 (235,100) wet profit (transfer to Retained earmings) 76900

lub Balance sheet of Blueboy Cheese corporakon as on December 31, 2021 Note Amount Particulars (1) Assets Non-corrent Asset (a) poopedly, plant and quipment a 374,000 correnl Asset (a) Invertories 54000 b Financial Assets ů roade receivables sorzic 345.000 14.600 (ii) cash and cash equivalent () other cusut Asset 2 오 14,500 Total Assets 802,100 (2) Equity and liabilities Equily (9) Common stock (b) Other Equity lei 409000 241 90o 3 Liabilities won-consent l'abilites ww 4 니 72,000 current liabilities 66) Financial liabilities (1) Bosrowings (11) Trade peajale (6) other content habilities Total Equity and liabilities: 18,000 5 10.200 802, 100

nde No I property, plant and Equipment office equipment 640,000 Less: Accomodated depreciation 266,000 374000 Note note othes curo ent Asset prepaid rent 14,500 Note no: 3 other equity Retained camings = 165,000 H) wet poft 46, 900 241.400 Note mo:4 Bonowings Note payable care in sist manta) = 72,000 Note nos : other cassent liabilites = 7,800 salaries payable Intasest payable 2,400 10,200

2. closing Jomal entries 31/12/2021 780,000 Sales basenue alc TO sncome Samnaey 19.000 Being Sale gevenue bocaskesed to Oncome Statement) 31/12/2011 -2 703100 og 117,000 3 Income summary all To cost of goods sold 468,000 64,800 To Depreciation expenses shay To salaries Expanse und Rent Expense 4350D To interest Expense 4800 2. To advertising Expense at 5800 (Being cost of good sold and other expenses transfered to sacome statement) TO 31/12/2021 76900 Income, stalenestalo Dr 76900 TO Retained comings (13eing pooff toursiersed to Retained eanings) [w we can write Income summary (88) Incorrie statement both are same] [please give like my answer it will help the very much, Thank you]