below. December $31$ is the company's reporting year$-$end. The company uses the perpetual inventory system.

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

The office equipment was purchased in $2022$ and is being depreciated using the straight$-$line method over an eight$-$year useful If

with no residual value.

Accrued salaries at yearend should be $$8,400.$

The company borrowed $$32,400$ 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 $10\%.$

The company debits supplies when supplies are purchased. Supplies on hand at year$-$end cost $$660.$

Prepaid rent expired during the period is $$14,900.$

Cash dividends paid to shareholders during the year amounted to $$10,500.$

Requlred:

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 $31,2024.$

Prepare the necessary closing entries assuming that adjusting entries have been correctly posted to the accounts.

Journal entry worksheet

$1$

$3$

Record the entry to close the expense accounts using retained earnings.

Note: Enter debils before creats.

Journal entry worksheet

Record the entry to close the revenue accounts using retained earnings.

Note: Enter debits before credite.

Journal entry worksheet

Record the entry to close the dividends account.

Note: Enter debits before credits.