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 Accounts receivable Debits 58,675 22,500 Credits Supplies 0 Prepaid rent 0 Inventory 52,500 office equipment 65,000 Accumulated depreciation Accounts payable 8,450 25,500 Salaries payable 3,000 Notes payable 28,500 Common stock 75,000 Retained earnings 14,750 Dividends 5,625 Sales revenue 210,000 Cost of goods sold 110,000 Interest expense 0 Salaries expense 32,350 Rent expense Supplies expense 12,200 1,600 Utility expense Totals 4,750 365,200 365,200 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 $4,500. 3. The company borrowed $28,500 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 $400. 5. Prepaid rent at year-end should be $850. 1. Complete the worksheet below. 2-a. Use the information in the worksheet to prepare an income statement for 2021. 2-b. Use the information in the worksheet to prepare a statement of shareholders' equity for 2021 2-c. Use the information in the worksheet to prepare a balance sheet as of December 31, 2021. 3. Prepare the necessary closing entries assuming that adjusting entries have been correctly posted to the accounts. Prov 1 of 1 Next Help Save & Exit