Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2018, appears below. December 31 is the companys fiscal year-end. The company uses the perpetual inventory system.

Account Title	Debits				Credits
Cash		22,700
Accounts receivable		31,900
Supplies		0
Prepaid rent		0
Inventory		59,000
Office equipment		83,025
Accumulated depreciationoffice equipment						9,400
Accounts payable						25,500
Salaries and wages payable						2,400
Note payable						24,000
Common stock						74,000
Retained earnings						28,275
Sales revenue						174,000
Cost of goods sold		89,000
Interest expense		0
Salaries and wages expense		31,750
Rent expense		13,400
Supplies expense		1,400
Utility expense		5,400
Totals		337,575				337,575

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

The office equipment was purchased in 2016 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 $3,600.

The company borrowed $24,000 on September 1, 2018. 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 $440.

Prepaid rent at year-end should be $1,600.

Required:

Prepare the necessary December 31, 2018, 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.)