below. December 31 is the company's fiscal year-end. The company uses the perpetual inventory system Account Title Debits Credits 64,300 22,500 Cash Accounts receivable Supplies Prepaid rent Inventory Office equipment Accumulated depreciation-office equipment Accounts payable Salaries and wages payable Note payable Common stock Retained earnings Sales revenue Cost of goods sold Interest expense Salaries and wage expense Rent expense Supplies expense Utility expense Totals 52,500 65,000 8,450 25,500 3,000 28,500 75,000 14,750 210,000 110,000 32,350 12,200 1,600 4,750 365, 200 365, 200 Cash dividends paid to shareholders during the year amounted to $5,625 Information necessary to prepare the year-end adjusting entries appears below 1. The office equipment was purchased in 2016 and is being depreciated using the straight-line method over an eight-year useful life with no salvage value 2. Accrued salaries and wages at year-end should be $4,500 3. The company borrowed $28,500 on September 1, 2018. 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 expense when supplies are purchased. Supplies on hand at year-end cost $400 5. Prepaid rent at year-end should be $850 Unadjusted Trial Adjusting Entries Adjusted Trial Balance Income Statement Balance Sheet Account Title Balance Dr. Cr. Dr. $64,300 Cash Accounts receivable Supplies Prepaid rent Inventory Office equipment Accumulated depreciation-office equipment Accounts payable Salaries and wages payable Note payable Interest payable Common stock Retained earnings Sales revenue $64,300 22,500 22,500 52,500 65,000 8,450 25,500 3,000 28,500 75,000 14,750 210,000 Cost of goods sold Interest expense Salaries and wages expense Rent expense Supplies expense Utility expense Depreciation expense 110,000 32,350 12,200 1,600 4,750 0 S 0