Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as ofDecember 31, 2016, appears below. December 31 is the company's fiscal year-end. The company uses the per-petual inventory system.Account TitleDebitsCreditsCash23,300Accounts receivable32,500SuppliesPrepaid rentInventoryOffice equipmentAccumulated depreciation-office equipmentAccounts payableSalaries and wages payableNote payable-0--0-65,00075,00010,00026,1003,00030,000Common stock80,000Retained earnings16,050Sales revenue180,000Cost of goods soldInterest expenseSalaries and wages expenseRent expenseSupplies expenseUtility expense95,000-0-32,35014,0002,0006,000Totals345,150345,150

Question
Asked Jan 15, 2020
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Information necessary to prepare the year-end adjusting entries appears below.
1. The office equipment was purchased in 2014 and is being depreciated using the straight-line method over an
eight-year useful life with no salvage value.
2. Accrued salaries and wages at year-end should be $4,500.
3. The company borrowed $30,000 on September 1, 2016. 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.
Required:
Prepare the necessary December 31, 2016, adjusting entries.

Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of
December 31, 2016, appears below. December 31 is the company's fiscal year-end. The company uses the per-
petual inventory system.
Account Title
Debits
Credits
Cash
23,300
Accounts receivable
32,500
Supplies
Prepaid rent
Inventory
Office equipment
Accumulated depreciation-office equipment
Accounts payable
Salaries and wages payable
Note payable
-0-
-0-
65,000
75,000
10,000
26,100
3,000
30,000
Common stock
80,000
Retained earnings
16,050
Sales revenue
180,000
Cost of goods sold
Interest expense
Salaries and wages expense
Rent expense
Supplies expense
Utility expense
95,000
-0-
32,350
14,000
2,000
6,000
Totals
345,150
345,150
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Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2016, appears below. December 31 is the company's fiscal year-end. The company uses the per- petual inventory system. Account Title Debits Credits Cash 23,300 Accounts receivable 32,500 Supplies Prepaid rent Inventory Office equipment Accumulated depreciation-office equipment Accounts payable Salaries and wages payable Note payable -0- -0- 65,000 75,000 10,000 26,100 3,000 30,000 Common stock 80,000 Retained earnings 16,050 Sales revenue 180,000 Cost of goods sold Interest expense Salaries and wages expense Rent expense Supplies expense Utility expense 95,000 -0- 32,350 14,000 2,000 6,000 Totals 345,150 345,150

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