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. 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 Debits $ 34,220 21,000 2,300 27,000 48,000 59,000 Credits $ 7,670 22,200 2,400 27,600 60,000 13,100 4,500 195,000 102,500 25,150 4,300 $ 327,970 Information necessary to prepare the year-end adjusting entries appears below. $ 327,970 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 $3,600 3. The company borrowed $27,600 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 $340. 5. Prepaid rent expired during the period is $13,300. Cash dividends paid to shareholders during the year amounted to $4,500. Account Title Unadjusted Trial Balance Debil Credit $ 34.220 Cash Accounts receivable 21,000 Supplies 2,300 Prepaid rent 27,000 Inventory 48.000 Office equipment 50.000 Accumulated depreciation $ 7,670 Accounts payable Salaries payable 22,200 2,400 27.600 Notes payable (long-term) Interest payable 0 Common stock 60,000 Retained eamings 13.100 Dividends 4,500 Sales revenue 196,000 Cost of goods sold 102.500 Interest expense 25,150 Salaries expense Rent expense Supplies expense Utilities Expense Depreciation expense 4,300 Adjusting Entries Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Cred Debit Credit Debit Cred $ Net income $ Totals 327,970 327 970 $ 05 05 05 0 0 Help S&Ex Submit Req 1 Req 2A Req 28 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 0 0 $ Req 1 Reg 20 > 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 28 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 Seved Help Save & Ext Submit Current assets Total current assets Total assets $ 0 Liabilities and Shareholders' Equity Liabilities Total labities Shareholders' equity Total shareholders' equity Total liabilities and shareholders' equity $ 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 require the first account field. General Journal Debit Credit Record entry Clear entry 20 View general journal