Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2018, appears below. December 31 is the company's fiscal year-end. The company uses the perpetual inventory system. Credits Debits 93,780 28,000 69,000 87,000 Account Title 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 11,310 37,600 5,200 31,800 130,000 20,800 265,000 137,500 0 58,750 18,800 2,480 6,400 501,710 501,710 Cash dividends paid to shareholders during the year amounted to $9,750. Information necessary to prepare the year-end adjusting entries appears below. 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 $7,800. 3. The company borrowed $31,800 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 $620. 5. Prepaid rent at year-end should be $1,400. 1. Complete the worksheet below. 2-a. Use the information in the worksheet to prepare an income statement for 2018. 2-b. Use the information in the worksheet to prepare a statement of shareholders' equity for 2018. 2-c. Use the information in the worksheet to prepare a balance sheet as of December 31, 2018. 3. Prepare the necessary closing entries assuming that adjusting entries have been correctly posted to the accounts. Use the information in the worksheet to prepare a statement of shareholders' equity for 2018. EXCALIBUR CORPORATION Statement of Shareholders' Equity For the Year Ended December 31, 2018 Common Stock Retained Earnings Total Shareholders' Equity Balance at January 1, 2018 Balance at December 31, 2018 Use the information in the worksheet to prepare an income statement for 2018. EXCALIBUR CORPORATION Income Statement For the Year Ended December 31, 2018 Journal entry worksheet 2 3 Record the entry to close the revenue accounts using the income summary. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2018 Record entry Clear entry View general journal Record the entry to close the expense accounts using the income summary. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2018 Account Title Unadjusted Trial Balance Dr. Cr. $ 93,780 28,000 Adjusting Entries Dr. Cr. Adjusted Trial Balance Dr. Cr. Income Statement Dr. Cr. Balance Sheet Dr. Cr. 69,000 87,000 11,310 37,600 5,200 31,800 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 Cost of goods sold Interest expense Salaries and wages expense Rent expense Supplies expense Utility expense Depreciation expense 130,000 20,800 265,000 137,500 58,750 18,800 2,480 6,400 Net income Totals 501,710 501.710 Reg 1 Req 2A > Journal entry worksheet
