4.Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2021, appears below. December 31 is the companys reporting year-end. The company uses the perpetual inventory system.

Account Title	Debits		Credits
Cash	72,505
Accounts receivable	25,500
Supplies	0
Prepaid rent	0
Inventory	61,500
Office equipment	77,000
Accumulated depreciation			10,010
Accounts payable			32,100
Salaries payable			4,200
Notes payable			30,300
Common stock			105,000
Retained earnings			18,050
Dividends	7,875
Sales revenue			240,000
Cost of goods sold	125,000
Interest expense	0
Salaries expense	46,750
Rent expense	15,800
Supplies expense	2,080
Utility expense	5,650
Totals	439,660		439,660

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 $6,300.
3. The company borrowed $30,300 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 $520.
5. Prepaid rent at year-end should be $1,150.

1. Complete the worksheet below for 2021 2. Prepare income statement, balance sheet, and statement of shareholder equity for 2021 3.Prepare the necessary closing entries assuming that adjusting entries have been correctly posted to the accounts.

Complete the worksheet below.

Account Title Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Income Statement Balance Sheet Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Cash $72,505 Accounts receivable 25,500 Supplies Prepaid rent Inventory 61,500 Office equipment 77,000 Accumulated depreciation $10,010 Accounts payable 32,100 Salaries payable 4,200 Notes payable 30,300 Interest payable 0 Common stock 105,000 Retained earnings 18,050 Dividends 7,875 Sales revenue 240,000 Cost of goods sold 125,000 Interest expense Salaries expense 46,750 Rent expense 15,800 Supplies expense 2,080 Utilities Expense 5,650 Depreciation expense $0 $0 $0 $0 Net income Totals $439,660 $439,660 $0 $0 $0 $0 $0 $0 $0 $0