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

Account Title	Debits	Credits
Cash	85,740
Accounts receivable	26,500
Supplies	0
Prepaid rent	0
Inventory	64,500
Office equipment	81,000
Accumulated depreciationoffice equipment		10,530
Accounts payable		34,300
Salaries and wages payable		4,600
Note payable		30,900
Common stock		115,000
Retained earnings		19,150
Sales revenue		250,000
Cost of goods sold	130,000
Interest expense	0
Salaries and wage expense	51,550
Rent expense	17,000
Supplies expense	2,240
Utility expense	5,950
Totals	464,480	464,480

Cash dividends paid to shareholders during the year amounted to $8,625.

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 $6,900.
3.	The company borrowed $30,900 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 $560.
5.	Prepaid rent at year-end should be $1,250.

1. Complete the worksheet below. Trial Adjusting Entries Adjusted Trial Income Statement Balance Account Title Cash 85,740 Accounts rccciyable 26,500 Supplies Prepaid rent 1250 inventory 64,500 81,000 Office equipment Accumulated deprecia ion-office 10,530 10.125 equipment 34.300 Accounts payable Salaries and wages payable 4,600 30,900 Note payable Interest payable Common stock 115.000 19.150 Retained earnings 250,000 Sales revenue 130.000 Cost of goods sold Interest expense 51.550 Salaries and wages expense 17.000 Rent expense 240 Supplies expense 5.950 Utility expense Depreciation expense 0 TS 464 480 464 480 1.810 12,425 S 0 S S 0 Totals Balance Sheet