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Exercise 2-12(Static) Financial statements and closing entries [LO2-7,2-8] The December 31,2024, adjusted trial...

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Accounting

Exercise 2-12(Static) Financial statements and closing entries [LO2-7,2-8]
The December 31,2024, adjusted trial balance for the Blueboy Cheese Corporation is presented below.
\table[[Account Title,Debits,Credits],[Cash,,$ 21,000,,],[Accounts receivable,,300,000,,],[Prepaid rent,,10,000,,],[Inventory,,50,000,,],[Office equipment,,600,000,,],[Accumulated depreciation,,,,$ 250,000],[Accounts payable,,,,60,000],[Notes payable (due in six months),,,,60,000],[Salaries payable,,,,8,000],[Interest payable,,,,2,000],[Common stock,,,,400,000],[Retained earnings,,,,100,000],[Sales revenue,,,,800,000],[Cost of goods sold,,480,000,,],[Salaries expense,,120,000,,],[Rent expense,,30,000,,],[Depreciation expense,,60,000,,],[Interest expense,,4,000,,],[Advertising expense,,5,000,,],[Totals,$,1,680,000,$,1,680,000]]
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.
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