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Excalibur Corporation manufactures and sells video games for personal computers. The unadjusted trial balance as of December 31, 2013, appears below. December 31 is the companys fiscal year-end. The company uses the perpetual inventory system.

Account Title	Debits	Credits
Cash	23,300
Accounts receivable	32,500
Supplies	0
Prepaid rent	0
Inventory	65,000
Equipment	75,000
Accumulated depreciationequipment		10,000
Accounts payable		26,100
Wages payable		3,000
Note payable		30,000
Common stock		80,000
Retained earnings		16,050
Sales revenue		180,000
Cost of goods sold	95,000
Interest expense	0
Wage expense	32,350
Rent expense	14,000
Supplies expense	2,000
Utility expense	6,000
Totals	345,150	345,150

Cash dividends paid to shareholders during the year amounted to $6,000.

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

1.	The equipment was purchased in 2011 and is being depreciated using the straight-line method over an eight-year useful life with no salvage value.
2.	Accrued wages at year-end should be $4,500.
3.	The company borrowed $30,000 on September 1, 2013. 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 $500.
5.	Prepaid rent at year-end should be $1,000.

Complete the worksheet below. DR CR Cash 23,300 Accounts Receivable 32,500 Supplies Prepaid Rent Inventory 65,000 Equipment 75,000 Accumulated Depreciation- equipment 10,000 Accounts Payable 26,100 Wages Payable 3,000 Note Payable 30,000 Interest Payable 0 Common Stock 80,000 Retained Earnings 16,050 Sales Revenue 180,000 Cost of Goods Sold 95,000 Interest Expense Wage Expense 32,350 Rent Expense 14,000 Supplies Expense 2,000 Utility Expense 6,000 Depreciation Expense Net Income Totals 345,150.00 345,150.00 Use the information in the worksheet to prepare an income statement for 2013. Use the information in the worksheet to prepare a statement of shareholders equity for 2013. (Negative amounts should be indicated by a minus sign.) Use the information in the worksheet to prepare a balance sheet as of December 31, 2013. Prepare the necessary closing entries assuming that adjusting entries have been correctly posted to the accounts. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

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