Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2024, appears below. December 31 is the companys reporting year-end. The company uses the perpetual inventory system.

Account Title	Debits	Credits
Cash	$ 35,450
Accounts receivable	20,000
Supplies	2,100
Prepaid rent	20,000
Inventory	45,000
Office equipment	55,000
Accumulated depreciation		$ 7,150
Accounts payable		20,000
Salaries payable		2,000
Notes payable (long-term)		27,000
Common stock		50,000
Retained earnings		12,000
Dividends	3,750
Sales revenue		185,000
Cost of goods sold	97,500
Interest expense	0
Salaries expense	20,350
Rent expense	0
Supplies expense	0
Utility expense	4,000
Totals	$ 303,150	$ 303,150

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

1. The office equipment was purchased in 2022 and is being depreciated using the straight-line method over an eight-year useful life with no residual value.
2. Accrued salaries at year-end should be $3,000.
3. The company borrowed $27,000 on September 1, 2024. 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 when supplies are purchased. Supplies on hand at year-end cost $300.
5. Prepaid rent expired during the period is $13,100.

Cash dividends paid to shareholders during the year amounted to $3,750.

Required:

1. Complete the worksheet below.

2-a. Use the information in the worksheet to prepare an income statement for 2024.

2-b. Use the information in the worksheet to prepare a statement of shareholders equity for 2024.

2-c. Use the information in the worksheet to prepare a balance sheet as of December 31, 2024.

3. Prepare the necessary closing entries assuming that adjusting entries have been correctly posted to the accounts.