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

Question:

Excalibur manufactures and sells video games for personal computers. The unadjusted trial balance as of December 31, 2011, appears below. December 31 is the company's fiscal year-end. The company uses the perpetual inventory system.

Information necessary to prepare the year-end adjusting entries appears below.
1. The equipment was purchased in 2009 and is being depreciated using the straight-line method over an eight-year useful life with no .
2. Accrued wages at year-end should be $4,500.
3. The company estimates that 2% of all year-end will probably not be collected.
4. The company borrowed $30,000 on September 1, 2011. 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%.
5. The company debits supplies expense when supplies are purchased. Supplies on hand at year-end cost $500.
6. Prepaid rent at year-end should be $1,000.

Required:
Prepare the necessary December 31, 2011, adjusting entries.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...