Blueboy Cheese Corporation Assignment
February 24th, 2020
2BHW 5.
The December 31, 2021, adjusted trial balance for the Blueboy Cheese Corporation is presented below.
| Account Title | Debits | Credits | |
| Cash | 22,700 | ||
| Accounts receivable | 330,000 | ||
| Prepaid rent | 13,000 | ||
| Inventory | 51,000 | ||
| Office equipment | 610,000 | ||
| Accumulated depreciation | 254,000 | ||
| Accounts payable | 72,000 | ||
| Notes payable (due in six months) | 63,000 | ||
| Salaries payable | 7,500 | ||
| Interest payable | 2,100 | ||
| Common stock | 400,000 | ||
| Retained earnings | 150,000 | ||
| Sales revenue | 750,000 | ||
| Cost of goods sold | 450,000 | ||
| Salaries expense | 112,500 | ||
| Rent expense | 39,000 | ||
| Depreciation expense | 61,000 | ||
| Interest expense | 4,200 | ||
| Advertising expense | 5,200 | ||
| Totals | 1,698,600 | 1,698,600 | |
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. .
