11.

Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2016, appears below. December 31 is the companys fiscal year-end. The company uses the perpetual inventory system.

Account Title	Debits			Credits
Cash		23,000
Accounts receivable		32,200
Supplies		0
Prepaid rent		0
Inventory		62,000
Office equipment		83,700
Accumulated depreciationoffice equipment					9,700
Accounts payable					25,800
Salaries and wages payable					2,700
Note payable					27,000
Common stock					77,000
Retained earnings					26,850
Sales revenue					177,000
Cost of goods sold		92,000
Interest expense		0
Salaries and wages expense		32,050
Rent expense		13,700
Supplies expense		1,700
Utility expense		5,700
Totals		346,050			346,050

Information necessary to prepare the year-end adjusting entries appears below.

1.	The office equipment was purchased in 2014 and is being depreciated using the straight-line method over an nine-year useful life with no salvage value.
2.	Accrued salaries and wages at year-end should be $4,050.
3.	The company borrowed $27,000 on September 1, 2016. The principal is due to be repaid in 12 years. Interest is payable twice a year on each August 31 and February 28 at an annual rate of 12%.
4.	The company debits supplies expense when supplies are purchased. Supplies on hand at year-end cost $470.
5.	Prepaid rent at year-end should be $1,300.

Required:

Prepare the necessary December 31, 2016, adjusting entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)