Using the information from P 28, prepare and complete a worksheet similar to Illustration 2A1. Use the information in the worksheet to prepare an income statement and a statement of shareholders equity for 2021 and a balance sheet as of December 31, 2021. Cash dividends paid to shareholders during the year amounted to $6,000. Also prepare the necessary closing entries assuming that adjusting entries have been correctly posted to the accounts.

P 2-8 Adjusting entries LO2-6 Excalibur Corpoation ells 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 perpetsal inventory wyste Account Ti Debits Credits 23.300 Cash Accounts receivable 32.500 Supplies Prepaid rent 65,000 Inventory omice equipment 75.000 Accumulated depreciation 10.000 Accounts payable 26,100 Salaries payable 3000 Melow Yellow Notes payable 30,000 Common stock 80000 Retained eamings 22.050 Dvidends 6.000 Add Note Sales revenue 180,000 Cost of goods sold 95.000 Copy Interest expense -0 32.350 Salaries expense Create Flashcard Rent expense Supplies expense 14,000 Read Aloud from here 2000 Utates expense 6.000 Totals 351.150 351.150 Information necessary to prepare the year-nd adjusting entries appears belo 1. The office equipsent was purchased in 2019 and is being depreciated using the straight-line method over a ten-year sedul life with no salvage value 2. Accrued salaries at year-end should be $4,500 3. The company boeroned $30,000 en September 1, 2021. The principai 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 ef 10% 4. The company debits supplies expense when supplies are purchased. Supplies ce hand at year-end cost $500 5. Prepaid sent at year-end should be $1,000 Wwweupdated our read aloud feaeture G Student Name: 1 2 Class Problem 02-13 3 4 5 EXCALIBUR CORPORATION 6 Worksheet 7 December 31, 2021 8 9 Adiusted Unadjusted 10 Account title Adjusting Entries Trial Balance Trial Balance Income Statement Balance Sheet 11 Debt Credit Debit Credit Debit Credit Debit Credit Debit Credit 12 Cash 13 Accounts receivable 14 Supplies 15 Prepaid rent 16 Inventory 17 Office equipment 18 Accumulated depreciation equip. 19 Accounts payable 20 Salaries payable - 21 Notes payable 22 Interest payable 23 Common stock 24 Retained earnings 25 Dividends 26 Sales revenue 27 Cost of goods sold 28 Interest expense 29 Salaries expenses 30 Rent expense 31 Supplies expense 32 Utilities expense 33 Depreciation expense 34 35 Net Income 36 Totals 37 38 39 EXCALIBUR CORPORATION 40 Income Statement 41 For the Year Ended December 31, 2021 42 43 Sales revenue 180,000 44 Cost of goods sold 95,000 45 Gross profit 85,000 46 Operating expenses: 47 Salaries expense 33,850 48 Rent expense 49 Supplies expense 13,000 1,500 50 Utilities expense 6,000 51 Depreciation expense 9,375 52 Total operating expenses 63,725 21,275 53 Operating income 54 Other Expense: 55 Interest expense 1,000 20,275 56 Net income 57 Try again! 58 59 EXCALIBUR CORPORATION 60 Statement of Shareholders' Equity 61 For the Year Ended December 31, 2021 62 63 Total 64 Share- holders 65 Common Retained 66 Stock Equity 102,050 Earnings 22,050 $ 80,000 $ 67 Balance at January 1, 2021 68 69 Issue of Common stock 70 Net income for 2021 20,275 20,275 1 Less: Dividends (6,000) 36,325 $ (6,000) 116,325 Try again! 72 Balance at December 31, 2021 80,000 $ 73 Correct Try again! 71 75 EXCALIBUR CORPORATION 76 Balance Sheet 77 At December 31, 2021 78 79 Assets 80 Current assets: 23,300 81 Cash 82 32,500 Accounts receivable 83 500 Supplies 84 Prepaid rent 1,000 85 Inventory 65,000 86 Total current assets 122,300 87 88 Office equipment 75,000 89 (19,375) Less: Accumulated depreciation 55,625 177,925 90 Total assets 91 Try again! 92 Liabilities and Shareholders' Equity 93 Current liabilities: 94 Accounts payable 26,100 95 Salaries payable 96 Notes payable 4,500 30,000 97 Interest payable 1,000 61,600 98 Total current liabilities 99 Correct! 100 Shareholders' equity: 101 Common stock 80,000 36,325 102 Retained earnings 103 116,325-Try again! 177,925 Total shareholders' equity 104 Total liabilities and shareholders' equity 105 Try again! 106 EXCALIBUR CORPORATION General Journal Debit Credit Account Closing entries at December 31, 2021 Sales revenue 180,000 Retained earnings 180,000 Correct! 159,275 Try again! Retained earnings 95,000 Cost of goods sold Interest expense 1,000 33,850 Salaries expense 13,000 1,500 Rent expense Supplies expense Utilities expense 6,000 Depreciation expense 9,375 Retained earnings 20,275 20,275- Try again! Dividends