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	$ 47,990
Accounts receivable	22,000
Supplies	2,500
Prepaid rent	19,000
Inventory	51,000
Office equipment	63,000
Accumulated depreciation		$ 8,190
Accounts payable		24,400
Salaries payable		2,800
Notes payable (long-term)		28,200
Common stock		70,000
Retained earnings		14,200
Dividends	5,250
Sales revenue		205,000
Cost of goods sold	107,500
Interest expense	0
Salaries expense	29,950
Rent expense	0
Supplies expense	0
Utility expense	4,600
Totals	$ 352,790	$ 352,790

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 $4,200.
3. The company borrowed $28,200 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 $380.
5. Prepaid rent expired during the period is $13,500.

Cash dividends paid to shareholders during the year amounted to $5,250.

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.

EXCALIBUR CORPORATION Income Statement For the Year Ended December 31, 2024 EXCALIBUR CORPORATION Statement of Shareholders' Equity For the Year Ended December 31, 2024 Balance at January 1, 2024 \begin{tabular}{|c|c|c|} \hline CommonStock & RetainedEarnings & TotalShareholdersEquity \\ \hline & & \\ \hline & & \\ \hline & \\ \hline \end{tabular} Balance at December 31, 2024 Req 2C> EXCALIBUR CORPORATION Balance Sheet At December 31, 2024 Assets Current assets: Shareholders' equity: Liabilities and Shareholders' Equity Liabilities: Journal entry worksheet Record the entry to close the revenue accounts using retained earnings. Note: Enter debits before credits. Journal entry worksheet Record the entry to close the expense accounts using retained earnings. Note: Enter debits before credits. Journal entry worksheet Record the entry to close the dividends account. Note: Enter debits before credits