Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2024, appears below. December 31 is the company's reporting year-end. The company uses the perpetual inventory system. \begin{tabular}{|c|c|c|} \hline Account Title & Debits & Credits \\ \hline Cash & $46,105 & \\ \hline Accounts receivable & 21,500 & \\ \hline Supplies & 2,400 & \\ \hline Prepaid rent & 18,000 & \\ \hline Inventory & 49,500 & \\ \hline Office equipment & 61,000 & \\ \hline Accumulated depreciation & & $7,930 \\ \hline Accounts payable & & 23,300 \\ \hline Salaries payable & & 2,600 \\ \hline Notes payable (long-term) & & 27,900 \\ \hline Common stock & & 65,000 \\ \hline Retained earnings & & 13,650 \\ \hline Dividends & 4,875 & \\ \hline Sales revenue & & 200,00 \\ \hline Cost of goods sold & 105,000 & \\ \hline Interest expense & & \\ \hline Salaries expense & 27,550 & \\ \hline Rent expense & & \\ \hline Supplies expense & & \\ \hline Utility expense & 4,450 & \\ \hline Totals & $340,380 & $340,380 \\ \hline \end{tabular} Information necessary to prepare the year-end adjusting entries appears below. 1. The office equipment was purchased in 2022 and is being depreciated using the straight-line method over an eight-year useful life with no residual value. 2. Accrued salaries at year-end should be $3,900. 3. The company borrowed $27,900 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%. 4. The company debits supplies when supplies are purchased. Supplies on hand at year-end cost $360. 5. Prepaid rent expired during the period is $13,400. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[t]{2}{*}{ Account Title } & \multicolumn{2}{|c|}{\begin{tabular}{l} Unadjusted Irial \\ Balance \end{tabular}} & \multicolumn{2}{|c|}{ Adjusting Entries } & \multicolumn{2}{|c|}{\begin{tabular}{l} Adjusted Irial \\ Balance \end{tabular}} & \multicolumn{2}{|c|}{ Income Statement } & \multicolumn{2}{|c|}{ Balance Sheet } \\ \hline & Debit & Credit & Debit & Credit & Debit & Credit & Debit & Credit & Debit & Credit \\ \hline Cash & $46,105 & & P & & & & & & & \\ \hline Accounts receivable & 21,500 & & p & & & & & & & \\ \hline Supplies & 2,400 & & p & & & & & & & \\ \hline Prepaid rent & 18,000 & & P & & & & & & & \\ \hline Inventory & 49,500 & & P & & & & & & & \\ \hline Office equipment & 61,000 & & p & & & & & & & \\ \hline Accumulated depreciation & & $7,930 & P & & & & & & & \\ \hline Accounts payable & & 23,300 & p & & & & & & & \\ \hline Salaries payable & & 2,600 & P & & & & & & & \\ \hline Notes payable (long-term) & & 27,900 & p & & & & & & & \\ \hline Interest payable & & 0 & & & & & & & & \\ \hline Common stock & & 65,000 & p & & & & & & & \\ \hline Retained earnings & & 13,650 & p & & & & & & & \\ \hline Dividends & 4,875 & & P & & & & & & & \\ \hline Sales revenue & & 200,000 & & & & & & & & \\ \hline Cost of goods sold & 105,000 & & p & & & & & & & \\ \hline Interest expense & & & P & & & & & & & \\ \hline Salaries expense & 27,550 & & P & & & & & & & \\ \hline Rent expense & & & P & & & & & & & \\ \hline Supplies expense & & & p & & & & & & & \\ \hline Utilities Expense & 4,450 & & P & & & & & & & \\ \hline Depreciation expense & & & & & & & & & & \\ \hline & & & & & & & $ & $ & 0 & $ \\ \hline Net income & & & & & & & & & & \\ \hline Totals & $340,380 & $340,380 & $ & $ & $ & $ & $ & $ & $ & $ \\ \hline \end{tabular}