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 Debits Credits

Cash $ $61,185$

Accounts receivable $25,500$

Supplies $3,200$

Prepaid rent $26,000$

Inventory $61,500$

Office equipment $77,000$

Accumulated depreciation $ $10,010$

Accounts payable $32,100$

Salaries payable $4,200$

Notes payable $($long$-$term$)30,300$

Common stock $105,000$

Retained earnings $18,050$

Dividends $7,875$

Sales revenue $240,000$

Cost of goods sold $125,000$

Interest expense $0$

Salaries expense $46,750$

Rent expense $0$

Supplies expense $0$

Utility expense $5,650$

Totals $ $439,660$ $ $439,660$

Information necessary to prepare the year$-$end adjusting entries appears below.

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.

Accrued salaries at year$-$end should be $$6,300.$

The company borrowed $$30,300$ 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 $10\%.$

The company debits supplies when supplies are purchased. Supplies on hand at year$-$end cost $$520.$

Prepaid rent expired during the period is $$14,200.$

Cash dividends paid to shareholders during the year amounted to $$7,875.$

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.