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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. Information necessary to prepare the year-end adjusting entries appears below. 1. 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. 2. Accrued salaries at year-end should be $8,700. 3. The company borrowed $32,700 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%. 4. The company debits supplies when supplies are purchased. Supplies on hand at year-end cost $680. 5. Prepaid rent expired during the period is $15,000. Cash dividends paid to shareholders during the year amounted to $10,875. Requlred: 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. Use the information in the worksheet to prepare a statement of shareholders' equity for 2024 nber 31, 2024. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ EXCALIBUR CORPORATION } \\ \hline \multicolumn{3}{|c|}{ Income Statement } \\ \hline \multicolumn{3}{|c|}{ For the Year Ended December 31, 2024} \\ \hline 7 & & \\ \hline 7 & 7 & \\ \hline Gross profit & & 0 \\ \hline \multicolumn{3}{|l|}{ Operating expenses: } \\ \hline & & \\ \hline \multicolumn{3}{|l|}{F} \\ \hline & & \\ \hline \multicolumn{3}{|l|}{7} \\ \hline 7 & & \\ \hline \multicolumn{3}{|l|}{F} \\ \hline \multicolumn{3}{|l|}{7} \\ \hline Total operating expenses & & 0 \\ \hline Operating income & & 0 \\ \hline \multicolumn{3}{|l|}{ Other expense: } \\ \hline \multicolumn{3}{|l|}{7} \\ \hline Net income & $ & 0 \\ \hline \end{tabular} Journal entry worksheet Record the entry to close the revenue accounts using retained earnings. Note: Enter debits before credits. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[t]{2}{*}{ Account Title } & \multicolumn{2}{|c|}{UnadjustedTrialBalance} & \multicolumn{2}{|c|}{ Adjusting Entries } & \multicolumn{2}{|c|}{AdjustedTrialBalance} & \multicolumn{2}{|c|}{ Income Statement } & \multicolumn{2}{|c|}{ Balance Sheet } \\ \hline & Debit & Credit & Debit & Credit & Debit & Credit & Debit & Credit & Debit & Credit \\ \hline Cash & $76,265 & & & & $76,265 & & & & $76,265 & \\ \hline Accounts receivable & 29,500 & & & & 29,500 & & & & 29,500 & \\ \hline Supplies & 4,000 & & & & & & & & & \\ \hline Prepaid rent & 34,000 & & & & & & & & & \\ \hline Inventory & 73,500 & & & & 73,500 & & 7 & & 73,500 & \\ \hline Office equipment & 93,000 & & & & 93,000 & & & & 93,000 & \\ \hline Accumulated depreciation & & $12,090 & & & & & & & & \\ \hline Accounts payable & & 40,900 & & & & 40,900 & & & & 40,900 \\ \hline Salaries payable & & 5,800 & & & & & 7 & & & \\ \hline Notes payable (long-term) & & 32,700 & & & & 32,700 & & & & 32,700 \\ \hline Interest payable & & 0 & & & & 0 & & & & 0 \\ \hline Common stock & & 145,000 & & & & 145,000 & & & & 145,000 \\ \hline Retained earnings & & 22,450 & & & & 22,450 & & & & 22,450 \\ \hline Dividends & 10,875 & & & & 10,875 & & & & 10,875 & \\ \hline Sales revenue & & 280,000 & & & & 280,000 & & & & 280,000 \\ \hline Cost of goods sold & 145,000 & & & & 145,000 & & & & 145,000 & \\ \hline \multicolumn{11}{|l|}{ Interest expense } \\ \hline Salaries expense & 65,950 & & & & & & 7 & & & \\ \hline \multicolumn{11}{|l|}{ Rent expense } \\ \hline \multicolumn{11}{|l|}{ Supplies expense } \\ \hline Utilities Expense & 6,850 & & & & & & & & & \\ \hline \multirow[t]{2}{*}{ Depreciation expense } & & & & & 6,850 & & & & 6,850 & \\ \hline & & & & & & & $ & 0 & $434,990 & S521,050 \\ \hline \multicolumn{11}{|l|}{ Net income } \\ \hline Totals & 538,940 & S538,940 & $ & $ & $434,990 & S521,050 & 0 & 0 & $434,990 & S521,050 \\ \hline \end{tabular} Req2A> Record the entry to close the expense accounts using retained earnings. Note: Enter debits before credits. Record the entry to close the dividends account. Note: Enter debits before credits

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