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	Debits	Credits
Cash	$ 74,380
Accounts receivable	29,000
Supplies	3,900
Prepaid rent	33,000
Inventory	72,000
Office equipment	91,000
Accumulated depreciation		$ 11,830
Accounts payable		39,800
Salaries payable		5,600
Notes payable (long-term)		32,400
Common stock		140,000
Retained earnings		21,900
Dividends	10,500
Sales revenue		275,000
Cost of goods sold	142,500
Interest expense	0
Salaries expense	63,550
Rent expense	0
Supplies expense	0
Utility expense	6,700
Totals	$ 526,530	$ 526,530

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 $8,400.
3. The company borrowed $32,400 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 $660.
5. Prepaid rent expired during the period is $14,900.

Cash dividends paid to shareholders during the year amounted to $10,500.