Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2021, appears below. December 31 is the companys reporting year-end. The company uses the perpetual inventory system.

Account Title	Debits		Credits
Cash	60,980
Accounts receivable	23,000
Supplies	0
Prepaid rent	0
Inventory	54,000
Office equipment	67,000
Accumulated depreciation			8,710
Accounts payable			26,600
Salaries payable			3,200
Notes payable			28,800
Common stock			80,000
Retained earnings			15,300
Dividends	6,000
Sales revenue			215,000
Cost of goods sold	112,500
Interest expense	0
Salaries expense	34,750
Rent expense	12,800
Supplies expense	1,680
Utility expense	4,900
Totals	377,610		377,610

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 straight-line method over an eight-year useful life with no salvage value.
2. Accrued salaries at year-end should be $4,800.
3. The company borrowed $28,800 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 $420.
5. Prepaid rent at year-end should be $900.

Worksheet Adjusting Entries Debit Credit Income Statement Debit Credit $420 $900 $8,375 Account Title Cash Accounts receivable Supplies Prepaid rent Inventory Office equipment Accumulated depreciation Accounts payable Salaries payable Interest payable Notes payable Common stock Retained earnings Dividends Sales revenue Cost of goods sold Interest expense Salaries expense Rent expense Supplies expense Utility expense Depreciation expense $4,800 $960 Unadjusted Trial Balance Debit Credit $60,980 $23,000 $0 $0 $54,000 $67,000 $8,710 $26,600 $3,200 $0 $28,800 $80,000 $15,300 $6,000 $215,000 $112,500 $0 $34,750 $12,800 $1,680 $4,900 $0 Balance Sheet Debit Credit $60,980 $23,000 $420 $900 $54,000 $67,000 $17,085 $26,600 $8,000 $960 $28,800 $80,000 $15,300 $6,000 Adjusted Trial Balance Debit Credit $60,980 $23,000 $420 $900 $54,000 $67,000 $17,085 $26,600 $8,000 $960 $28,800 $80,000 $15,300 $6,000 $215,000 $112,500 $960 $39,550 $11,900 $1,260 $4,900 $8,375 $215,000 $960 $4,800 $900 $420 $112,500 $960 $39,550 $11,900 $1,260 $4,900 $8,375 $8,375 Net income Totals $35,555 $215,000 $35,555 $212,300 $377,610 $377,610 $15,455 $15,455 $391,745 $391,745 $215,000 $212,300 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 Current assets Cash Accounts receivable Supplies Prepaid rent Inventory Total current assets 0 Office equipment Accumulated depreciation Total assets $ 0 Liabilities and Shareholders' Equity Liabilities Accounts payable Salaries payable Notes payable