Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2016, appears below. December 31 is the companys fiscal year-end. The company uses the perpetual inventory system.

Account Title	Debits	Credits
Cash	24,000
Accounts receivable	33,200
Supplies	0
Prepaid rent	0
Inventory	72,000
Office equipment	85,950
Accumulated depreciationoffice equipment	10,700
Accounts payable	26,800
Salaries and wages payable	3,700
Note payable	37,000
Common stock	87,000
Retained earnings	22,100
Sales revenue	187,000
Cost of goods sold	102,000
Interest expense	0
Salaries and wages expense	33,050
Rent expense	14,700
Supplies expense	2,700
Utility expense	6,700
Totals	374,300	374,300

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

1.	The office equipment was purchased in 2014 and is being depreciated using the straight-line method over an nine-year useful life with no salvage value.
2.	Accrued salaries and wages at year-end should be $5,550.
3.	The company borrowed $37,000 on September 1, 2016. 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 $570.
5.	Prepaid rent at year-end should be $1,700.

Required:

Prepare the necessary December 31, 2016, 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.)

Journal Entry Worksheet:

The office equipment was purchased in 2014 and is being depreciated using the straight-line method over an nine-year useful life with no salvage value.

Accrued salaries and wages at year-end should be $5,550.

The company borrowed $37,000 on September 1, 2016. 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%.

The company debits supplies expense when supplies are purchased. Supplies on hand at year-end cost $570.

Prepaid rent at year-end should be $1,700.