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

Account Title

Debits

Credits

Cash

23,300

Accounts receivable

32,500

Supplies

0

Prepaid rent

0

Inventory

65,000

Office equipment

75,000

Accumulated depreciationoffice equipment

10,000

Accounts payable

26,100

Salaries and wages payable

3,000

Note payable

30,000

Common stock

80,000

Retained earnings

16,050

Sales revenue

180,000

Cost of goods sold

95,000

Interest expense

0

Salaries and wages expense

32,350

Rent expense

14,000

Supplies expense

2,000

Utility expense

6,000

Totals

345,150

345,150

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 $4,500.
	3. The company borrowed $30,000 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 $500.
	5. Prepaid rent at year-end should be $1,000. Prepare the necessary December 31, 2016, adjusting entries.