In: Accounting
The December 31, 2021, adjusted trial balance for the Blueboy
Cheese Corporation is presented below.
Account Title | Debits | Credits | |
Cash | 63,100 | ||
Accounts receivable | 260,000 | ||
Prepaid rent | 6,000 | ||
Inventory | 37,000 | ||
Office equipment | 470,000 | ||
Accumulated depreciation | 198,000 | ||
Accounts payable | 44,000 | ||
Notes payable (due in six months) | 21,000 | ||
Salaries payable | 6,200 | ||
Interest payable | 700 | ||
Common stock | 400,000 | ||
Retained earnings | 80,000 | ||
Sales revenue | 620,000 | ||
Cost of goods sold | 372,000 | ||
Salaries expense | 93,000 | ||
Rent expense | 18,000 | ||
Depreciation expense | 47,000 | ||
Interest expense | 1,400 | ||
Advertising expense | 2,400 | ||
Totals | 1,369,900 | 1,369,900 | |
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.