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. Account Title Cash Accounts receivable Debits $ 45,875 22,500 Credits 2,600 Supplies Prepaid rent Inventory Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable (long-term) Common stock Retained earnings Dividends Sales revenue Cost of goods sold Interest expense Salaries expense Rent expense Supplies expense Utility expense Totals 24,000 52,500 65,000 $ 8,450 25,500 3,000 28,500 75,000 14,750 5,625 210,000 110,000 0 32,350 0 4,750 $ 365,200 $ 365,200 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 $4,500. 3. The company borrowed $28,500 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 $400. 5. Prepaid rent expired during the period is $13,600. Cash dividends paid to shareholders during the year amounted to $5,625. Account Title Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash $ 45,875 Accounts receivable 22,500 Supplies 2,600 Prepaid rent 24,000 Inventory 52,500 Office equipment 65,000 Accumulated depreciation $ 8,450 Accounts payable 25,500 Salaries payable Notes payable (long-term) 3,000 28,500 Interest payable 0 Common stock 75,000 Retained earnings 14,750 Dividends 5,625 Sales revenue 210,000 Cost of goods sold 110,000 Interest expense Salaries expense 32,350 Rent expense Supplies expense Utilities Expense 4,750 Depreciation expense Net income Totals $ 0 $ 0 $ 0 $ 0 $ $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 365,200 0 $ 0 365,200 3. Prepare the necessary closing entries assuming that adjusting entries have been correctly posted to the accounts. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 3 Use the information in the worksheet to prepare an income statement for 2024. EXCALIBUR CORPORATION Income Statement For the Year Ended December 31, 2024 Gross profit Operating expenses: Total operating expenses Operating income Other expense: Net income Rea 1 0 0 0 $ 0 Rea 2B Required: 1. 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. 3. Prepare the necessary closing entries assuming that adjusting entries have been correctly posted to the accounts. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 3 Use the information in the worksheet to prepare a statement of shareholders' equity for 2024. EXCALIBUR CORPORATION Statement of Shareholders' Equity For the Year Ended December 31, 2024 Balance at January 1, 2024 Common Stock Retained Earnings Total Shareholders' Equity Balance at December 31, 2024 < Req 2A Req 2C > Current assets: Total current assets Total assets Liabilities: Total liabilities Shareholders' equity: EXCALIBUR CORPORATION Balance Sheet At December 31, 2024 Assets 0 $ 0 Liabilities and Shareholders' Equity Total shareholders' equity Total liabilities and shareholders' equity 0 0 $ 0 View transaction list Journal entry worksheet 1 2 3 Record the entry to close the revenue accounts using retained earnings. Note: Enter debits before credits. Date December 31, 2024 General Journal Debit Credit Record entry Clear entry View general journal