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Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December $31,2024,$ appears below. December $31$ is the company$$s reporting year$-$end. The company uses the perpetual inventory system.

Account Title Debits Credits

Cash $ $34,220$

Accounts receivable $21,000$

Supplies $2,300$

Prepaid rent $27,000$

Inventory $48,000$

Office equipment $59,000$

Accumulated depreciation $ $7,670$

Accounts payable $22,200$

Salaries payable $2,400$

Notes payable $($long$-$term$)27,600$

Common stock $60,000$

Retained earnings $13,100$

Dividends $4,500$

Sales revenue $195,000$

Cost of goods sold $102,500$

Interest expense $0$

Salaries expense $25,150$

Rent expense $0$

Supplies expense $0$

Utility expense $4,300$

Totals $ $327,970$ $ $327,970$

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

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.

Accrued salaries at year$-$end should be $$3,600.$

The company borrowed $$27,600$ 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 $10\%.$

The company debits supplies when supplies are purchased. Supplies on hand at year$-$end cost $$340.$

Prepaid rent expired during the period is $$13,300.$

Cash dividends paid to shareholders during the year amounted to $$4,500.$

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.

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