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 Credits Debits 99,945 29,500 73,500 93,000 Account Title Cash Accounts receivable Supplies Prepaid rent Inventory Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Common stock Retained earnings Dividends Sales revenue Cost of goods sold Interest expense Salaries expense Rent expense Supplies expense Utility expense Totals 12,090 40,900 5,800 32,780 145,000 22,450 10,875 280,000 145,000 65,95 20,600 2,720 6,850 538,940 538,948 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 58,700. 3. The company borrowed $32.700 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% A The company debits supplies expense when supples are purchased Supplies on hand at year-end cosi $680 5. Prepaid rent at year-end should be $1,550, 90,945 29, See 0 73,500 93,00 Cash Accounts receivable Supplies Prepaid rent Inventory office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Common stock Retained earnings Dividends Sales revenue Cost of foods sold Interest expense Salaries expense Rent expense Supplies expense Utility expense Totals 12,090 40,900 5,800 32,700 145,000 22,456 20,000 145,000 65,50 20,640 2,720 0,50 538.940 53940 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 $8.700. 3. The company borrowed $32.700 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 1 an annual rate of 10% 4. The company debits supplies expense when supplies are purchased Supplies on hand at year-end cost $680. 5. Prepaid rent at year-end should be $1,550 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
