Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2021, appears below. December 31 is the company's reporting year-end. The company uses the perpetual inventory system. Account Title Cash Debits 23,000 Credits Accounts receivable 32,200 Supplies Prepaid rent 0 Inventory 62,000 Office equipment 66,825 Accumulated depreciation 9,700 Accounts payable 25,800 Salaries payable 2,700 Notes payable Common stock 27,000 77,000 Retained earnings 18,575 Dividends 8,600 Sales revenue 177,000 Cost of goods sold 92,000 Interest expense 0 Salaries expense 32,050 Rent expense 13,700 Supplies expense 1,700 Utilities expense 5,700 Totals 337,775 337,775 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 nine-year useful life with no salvage value. 2. Accrued salaries at year-end should be $4,050. 3. The company borrowed $27,000 on September 1, 2021. The principal is due to be repaid in 12 years. Interest is payable twice a year on each August 31 and February 28 at an annual rate of 12%. 4. The company debits supplies expense when supplies are purchased. Supplies on hand at year-end cost $470. 5. Prepaid rent at year-end should be $1,300. Required: Prepare the necessary December 31, 2021, adjusting entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)