Question

mework Exercises The December 31, 2021. adjusted trial balance for the Blueboy Cheese Corporation is presented below. Credits Debits 21,000 300,000 10,000 50,000 600,000 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 250,000 60,000 60,000 8,000 2,000 400,000 100,000 800,000 480,000 120,000 30,000 60,000 4,000 5,000 1,680,000 1,680,000 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 clozing entries at December 31, 2021. Complete this question by entering your answers in the tabs below. Reg 1A Req 18 Reg 2 Prepare a classified balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated b < Prev 4 of 5 Next > Macho

Answer 1

Income Statement
Particulars	Amount
Sales Revenue	800000
Less: Cost of Goods Sold	480,000
Gross Profit	320,000
Less: Salaries	120,000
Less: Rent Expense	30,000
Depreciation Expense	60,000
Interest Expense	4,000
Advertising Expense	5,000
Net Income	101,000

Statement of Retained earnings For the Year Ended Dec 31, 2021
Beginning balance	100,000
Add: Net Income	101,000
Less: Dividends	-
Ending Balance	201,000

Blue boy cheese corporation Balance sheet As on December 31,2021
Assets
Current Assets
Cash		21,000
Accounts receivable		300,000
Prepaid rent		10,000
Inventory		50,000
Total current assets		381,000
Fixed assets
Office equipment	600000
Accumulated depreciation	(250,000)	350,000
Total Assets		731,000
Liabilities & Shareholders Equity
Current liabilities
Accounts payable		60,000
Notes payable (due in six months)		60,000
Salaries payable		8,000
Interest payable		2,000
Total current liabilities		130,000
Shareholders equity
Common stock	400000
Retained earnings	201,000
Total shareholders equity		601,000
Total liabilities & shareholders equity		731,000

Journal entries
Date	Particulars	Debit ($)	Credit ($)
31-Dec	Sales revenue	800,000
	Income summary		800000
31-Dec	Income summary	699,000
	Cost of goods sold		480,000
	Salaries expense		120,000
	Rent expense		30,000
	Depreciation expense		60,000
	Advertising expense		5,000
	Interest expense		4,000
31-Dec	Income summary	101,000
	Retained earnings		101,000

Please up vote. Thanks!