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		24,200
Accounts receivable		33,400
Supplies		0
Prepaid rent		0
Inventory		74,000
Office equipment		76,800
Accumulated depreciationoffice equipment					10,900
Accounts payable					27,000
Salaries and wages payable					3,900
Note payable					39,000
Common stock					89,000
Retained earnings					11,550
Sales revenue					189,000
Cost of goods sold		104,000
Interest expense		0
Salaries and wages expense		33,250
Rent expense		14,900
Supplies expense		2,900
Utility expense		6,900
Totals		370,350			370,350

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 eight-year useful life with no salvage value.
2.	Accrued salaries and wages at year-end should be $5,850.
3.	The company borrowed $39,000 on September 1, 2016. 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 $590.
5.	Prepaid rent at year-end should be $1,900.

Required:

Prepare the necessary December 31, 2016, adjusting entries.