Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2021, appears below. December 31 is the company's reporting year-end. The company uses the perpetual inventory system. Credits Debits 23,300 32,500 65,000 75,000 Account Title Cash Accounts receivable Supplies Prepaid rent Inventory Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Common stock Retained earnings Dividends Sales revenue Cost of goods sold Interest expense Salaries expense Rent expense Supplies expense Utility expense Totals 10,000 26,100 3,000 30,000 80,000 22,050 6,000 180,000 95,000 0 32,350 14,000 2,000 6,000 351,150 351,150 Information necessary to prepare the year-end adjusting entries appears below. 1. The office equipment was purchased in 2019 and is being depreciated using the ten useful life with no salvage value. 2. Accrued salaries at year-end should be $4,500. 3. The company borrowed $30,000 on September 1, 2021. 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 $500. 5. Prepaid rent at year-end should be $1,000. 1. Complete the worksheet below. 2-a. Use the information in the worksheet to prepare an income statement for 2021. 2-b. Use the information in the worksheet to prepare a statement of shareholders' equity for 2021. 2-c. Use the information in the worksheet to prepare a balance sheet as of December 31, 2021. 3. Prepare the necessary closing entries assuming that adjusting entries have been correctly posted to the accounts. Complete the worksheet below. Account Title Unadjusted Trial Balance Dr. Cr. $ 23,300 32,500 Adjusting Entries Dr. Cr. Adjusted Trial Balance Dr. Cr. Income Statement Dr. Cr. Balance Sheet Dr. Cr. 65,000 75,000 $ 10,000 26,100 3,000 30,000 Cash Accounts receivable Supplies Prepaid rent Inventory Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Interest payable Common stock Retained earnings Dividends Sales revenue Cost of goods sold Interest expense Salaries expense Rent expense Supplies expense Utilities expense Depreciation expense 80,000 22,050 6,000 180,000 95,000 32,350 14,000 2,000 6,000 $ 0 $ 0 $ 0 $ 0 Net income Totals $351,150 $351,150S 0S 0S 0S 0S 0S 0S 0S 0 Use the information in the worksheet to prepare an income statement for 2021. EXCALIBUR CORPORATION Income Statement For the Year Ended December 31, 2021 0 0 0 Use the information in the worksheet to prepare a statement of shareholders' equity for 2021. EXCALIBUR CORPORATION Statement of Shareholders' Equity For the Year Ended December 31, 2021 Common Stock Retained Earnings Total Shareholders' Equity Balance at January 1, 2021 Balance at December 31, 2021 Use the information in the worksheet to prepare a balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) EXCALIBUR CORPORATION Balance Sheet At December 31, 2021 Assets Liabilities and Shareholders' Equity Journal entry worksheet 2 3 Record the entry to close the revenue accounts using retained earnings. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 Journal entry worksheet