1 Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2024, appears below. December 31 is the company's reporting year-end. The company uses the perpetual Inventory system. 15 points Skipped Print References Account Title Cash Accounts receivable Supplies Prepaid rent Inventory Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable (long-term) Common stock Retained earnings Dividends Sales revenue Cost of goods sold Interest expense Salaries expense Rent expense Supplies expense Utility expense Totals Debits $ 35,450 20,000 2,100 20,000 45,000 55,000 3,750 97,500 B 28,350 8 0 4,000 $ 303,150 Credits $ 7,150 20,000 2,000 27,000 50,000 12,000 185,000 $ 303,150 4 Information necessary to prepare the year-end adjusting entries appears below. 1. The office equipment was purchased in 2022 and is being depreciated using the straight-line method over an eight-year useful life with no residual value. 2. Accrued salaries at year-end should be $3,000. 3. The company borrowed $27,000 on September 1, 2024. The principal is due to be repaid in 10 years. Interest is payable twice a year on each August 31 and February 28 at an annual rate of 10%. 4. The company debits supplies en supplies are urchased. Supplies on hand at year-end cost $300. 5. Prepaid rent expired during the period is $13,100. Cash dividends paid to shareholders during the year amounted to $3,750.

Use the information in the worksheet to prepare a statement of shareholders' equity for 2024. Balance Sheet At December 31, 2024 Assets Current assets: \begin{tabular}{|c|c|c|c|c|} \hline Date2024 & & General Journal & Debit & Credit \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & \\ \hline \end{tabular} Required: 1. Complete the worksheet below. 2-a. Use the information in the worksheet to prepare an income statement for 2024. 2-b. Use the information in the worksheet to prepare a statement of shareholders' equity for 2024. 2-c. Use the information in the worksheet to prepare a balance sheet as of December 31, 2024. 3. Prepare the necessary closing entries assuming that adjusting entries have been correctly posted to the accounts. Record the entry to close the dividends account. Note: Enter debits before credits. Record the entry to close the expense accounts using retained earnings. Note: Enter debits before credits. Journal entry worksheet Record the entry to close the revenue accounts using retained earnings. Note: Enter debits before credits. EXCALIBUR CORPORATION Income Statement For the Year Ended December 31, 2024 Gross profit Operating expenses: Total operating expenses Operating income Other expense: Net income Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31,2024 , appears pelow. December 31 is the company's reportang year-end. The company uses the perpetual inventory system. Iformabon necessary to prepare the year end odjusting enthes appears below 1. The office equipment was purchaced in 2022 and is being depreciated using the straightine method over an eight-year useful ure with no residual volve 2. Accrued salaries atyear-end should be $3,000 3. The compony bortowed $27,000 on September 1, 2024 . The principat is due to be repald in 10 years. Interest is payable nuce a year on each August 31 and February 28 at on annusi tote of 10% 4. The company debits supplies when supples are purchased Supplies on hand at year-ead cost $300. 5. Prepoid rent expired during vie penod is $13,00 Fach dividends pald 10 shatehoiders durng the year amounted to $3.750