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 $ 66,840 27,000 Credits 3,500 29,000 66,000 83,000 $ 10,790 35,400 4,800 31,200 120,000 19,700 9,000 255,000 132,500 53,950 0 6,100 $ 476,890 $ 476,890 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 $7,200. 3. The company borrowed $31,200 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 $580. 5. Prepaid rent expired during the period is $14,500. Cash dividends paid to shareholders during the year amounted to $9,000. 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. Req 1 Req 2A Req 2B Req 2C Req 3 Complete the worksheet below. Account Title Unadjusted Trial Balance Debit Credit Debit Adjusting Entries Credit Adjusted Trial Balance Income Statement Balance Sheet Debit Credit Debit Credit Debit Credit Cash $ 66,840 Accounts receivable 27,000 Supplies 3,500 Prepaid rent 29,000 Inventory 66,000 Office equipment 83,000 Accumulated depreciation $ 10,790 Accounts payable 35,400 Salaries payable 4,800 Notes payable (long-term) 31,200 Interest payable 0 Common stock 120,000 Retained earnings 19,700 Dividends 9,000 Sales revenue 255,000 Cost of goods sold 132,500 Interest expense Salaries expense 53,950 Rent expense Supplies expense Utilities Expense Depreciation expense 6,100 $ 0 $ 0 $ 0 $ 0 Net income $ Totals $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 476,890 476,890 < Req 1 Req 2A > 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 $ 0 0 < Req 1 Req 2B > 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 > Use the information in the worksheet to prepare a balance sheet as of December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign. EXCALIBUR CORPORATION Balance Sheet At December 31, 2024 Current assets: Total current assets Total assets Liabilities: Total liabilities Shareholders' equity: Assets 0 $ 0 Liabilities and Shareholders' Equity Total shareholders' equity Total liabilities and shareholders' equity 0 0 $ 0 < Req 2B Req 3 > Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req 2C Req 3 Prepare the necessary closing entries assuming that adjusting entries have been correctly posted to the accounts. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. 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 < Req 2C Req 3 > >