Thursday, 7 May 2015

The December 31, 2013, adjusted trial balance for the Blueboy Cheese Corporation is presented below.

The December 31, 2013, adjusted trial balance for the Blueboy Cheese Corporation is presented below.
   
  Account Title   Debits Credits
  Cash 21,000     
  Accounts receivable 300,000     
  Prepaid rent 10,000     
  Inventory 50,000     
  Equipment 600,000     
  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   
 




   
Required:
1.
Prepare an income statement for the year ended December 31, 2013, and a classified balance sheet as of December 31, 2013.

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Explanation: