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 :45:01 Debits 86,335 28,500 0 0 70,500 89,000 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 11,570 38,700 5,400 32,100 135,000 21,350 10,125 270,000 140,000 0 61,150 19,400 2,560 6,550 514, 120 514,120 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 $8,100. 3. The company borrowed $32,100 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%. 4. The company debits supplies expense when supplies are purchased. Supplies on hand at year-end cost $640. 5. Prepaid rent at year-end should be $1,450. 1 Comolate the worksheet below Income Statement Balance Sheet Account Title Unadjusted Trial Balance Dr. Cr. $ 86,335 28,500 Adjusting Entries Dr. Cr. Dr. Cr. Dr. Cr. Cash Adjusted Trial Balance Dr. Cr. $ 86,335 28,500 640 640 1,450 70,500 89,000 1,450 70,500 77,875 11,125 $ 11,570 38,700 5,400 32,100 11,570 38,700 8,100 32,100 2,700 0 0 1,070 Accounts receivable Supplies Prepaid rent Inventory Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Interest payable Common stock Retained earnings Dividends Sales revenue Cost of goods sold Interest expense Salaries expense Rent expense Supplies expense Utilities Expense Depreciation expense 135,000 1,070 135,000 21,350 21,350 10,125 10,125 270,000 270,000 270,000 140,000 140,000 1,070 2,700 61,150 19,400 2,560 6,550 1,450 6401 140,000 1,070 63,850 17,950 1,920 6,550 11,125 1,070 63,850 17.950 1,920 6,550 11,125 $ 242,465 11,125 $ $ 270,000 0 0 $