Excalibur Corporation sells video games for personal computers.The unadjusted trial balance as of December...

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Accounting

Excalibur Corporation sells video games for personal computers.The unadjusted trial balance as of December 31, 2016, appearsbelow. December 31 is the company’s fiscal year-end. The companyuses the perpetual inventory system.
Debits
Cash 88,420
Accounts receivable 27,000
Supplies 0
Prepaid rent 0
Inventory 66,000
Office equipment 83,000
Cost of goods sold 132,500
Interest expense 0
Salaries and wage expense 53,950
Rent expense 17,600
Supplies expense 2,320
Utility expense 6,100
Credits
Accumulated depreciation—office equipment 10,790
Accounts payable 35,400
Salaries and wages payable 4,800
Note payable 31,200
Common stock 120,000
Retained earnings 19,700
Sales revenue 255,000
Totals 476,890 476,890
Cash dividends paid to shareholders during the year amounted to$9,000.
Information necessary to prepare the year-end adjusting entriesappears below.
1. The office equipment was purchased in 2014 and is beingdepreciated using the straight-line method over an eight-yearuseful life with no salvage value.
2. Accrued salaries and wages at year-end should be $7,200.
3. The company borrowed $31,200 on September 1, 2016. Theprincipal is due to be repaid in 10 years. Interest is payabletwice a year on each August 31 and February 28 at an annual rate of10%.
4. The company debits supplies expense when supplies arepurchased. Supplies on hand at year-end cost $580.
5. Prepaid rent at year-end should be $1,300.
Required information 1. Complete the worksheet below.
2-a. Use the information in the worksheet to prepare an incomestatement for 2016.
2-b. Use the information in the worksheet to prepare a statementof shareholders’ equity for 2016.
2-c. Use the information in the worksheet to prepare a balancesheet as of December 31, 2016. (Amounts to be deducted should beindicated by a minus sign.)
Required information
3. Prepare the necessary closing entries assuming that adjustingentries have been correctly posted to the accounts. (If no entry isrequired for a transaction/event, select "No journal entryrequired" in the first account field.)

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Answer 1 EXCALIBUR CORPORATION Work Sheet For Year Ended Dec 31 2016 Trial Balance Adjustments Adjusted Trial Balance Income Summary Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Balance Sheet Accounts Cash 8842000 8842000 8842000 Accounts Receivable 2700000 2700000 2700000 Supplies 58000 58000 58000 Prepaid Rent 130000 130000 130000 Inventory 6600000 6600000 6600000 Office Equipment 8300000 8300000 8300000 Accumulated Dep Office Equip 1079000 1037500 2116500 2116500 Accounts Payable 3540000 3540000 3540000 Salaries Wages Payable 480000 240000 720000 720000 Notes See Answer

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In: AccountingExcalibur Corporation sells video games for personal computers.The unadjusted trial balance as of December 31,...Excalibur Corporation sells video games for personal computers.The unadjusted trial balance as of December 31, 2016, appearsbelow. December 31 is the company’s fiscal year-end. The companyuses the perpetual inventory system.DebitsCash 88,420Accounts receivable 27,000Supplies 0Prepaid rent 0Inventory 66,000Office equipment 83,000Cost of goods sold 132,500Interest expense 0Salaries and wage expense 53,950Rent expense 17,600Supplies expense 2,320Utility expense 6,100CreditsAccumulated depreciation—office equipment 10,790Accounts payable 35,400Salaries and wages payable 4,800Note payable 31,200Common stock 120,000Retained earnings 19,700Sales revenue 255,000Totals 476,890 476,890Cash dividends paid to shareholders during the year amounted to$9,000.Information necessary to prepare the year-end adjusting entriesappears below.1. The office equipment was purchased in 2014 and is beingdepreciated using the straight-line method over an eight-yearuseful life with no salvage value.2. Accrued salaries and wages at year-end should be $7,200.3. The company borrowed $31,200 on September 1, 2016. Theprincipal is due to be repaid in 10 years. Interest is payabletwice a year on each August 31 and February 28 at an annual rate of10%.4. The company debits supplies expense when supplies arepurchased. Supplies on hand at year-end cost $580.5. Prepaid rent at year-end should be $1,300.Required information 1. Complete the worksheet below.2-a. Use the information in the worksheet to prepare an incomestatement for 2016.2-b. Use the information in the worksheet to prepare a statementof shareholders’ equity for 2016.2-c. Use the information in the worksheet to prepare a balancesheet as of December 31, 2016. (Amounts to be deducted should beindicated by a minus sign.)Required information3. Prepare the necessary closing entries assuming that adjustingentries have been correctly posted to the accounts. (If no entry isrequired for a transaction/event, select "No journal entryrequired" in the first account field.)