The December 31, 2013, adjusted trial balance for the Blueboy Cheese Corporation is presented below.
Account Title Debits Credits
Accounts receivable 300,000
Prepaid rent 10,000
Accumulated depreciation—equipment 250,000
Accounts payable 60,000
Note 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
1. Prepare an income statement for the year ended December 31, 2013, and a classified balance sheet as of
December 31, 2013.
2. Prepare the necessary closing entries at December 31, 2013.
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