The December 31, 2024, adjusted trial balance for the Blueboy Cheese Corporation is presented below.

Account Title Debits Credits
Cash $ 41,500
Accounts receivable 305,000
Prepaid rent 10,500
Inventory 45,000
Office equipment 550,000
Accumulated depreciation $ 230,000
Accounts payable 62,000
Notes payable (due in six months) 45,000
Salaries payable 7,000
Interest payable 1,500
Common stock 400,000
Retained earnings 125,000
Sales revenue 700,000
Cost of goods sold 420,000
Salaries expense 105,000
Rent expense 31,500
Depreciation expense 55,000
Interest expense 3,000
Advertising expense 4,000
Totals $ 1,570,500 $ 1,570,500
Required:
1-a. Prepare an income statement for the year ended December 31, 2024.

1-b. Prepare a classified balance sheet as of December 31, 2024.

2. Prepare the necessary closing entries on December 31, 2024.