Using the information from 2-8. Prepare and complete a worksheet similar to 2A-1. Using the information in the worksheet to prepare an income statement and a statement of shareholders' equity from 2021 and a balance sheet as of December 31, 2021. Cash dividends paid to shareholders during the year amounted to $6000. Also, prepare the necessary closing entries assuming that adjusting entries have been currently posted to the accounts.

What the answer should look like:

P 2-8 Adjusting entries @LO2-6 Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2021, appears below. December 31 is the company's reporting year-end. The company uses the perpetual inventory system. Account Title Debits Credits Cash 23,300 Accounts receivable 32.500 Supplies -0- -0- Prepaid rent Inventory 65.000 Office equipment 75,000 Accumulated depreciation Accounts payable Salaries payable Notes payable 10.000 26,100 3.000 30,000 80,000 Common stock Retained earnings 22.050 Dividends 6,000 Sales revenue 180.000 Cost of goods sold 95.000 Interest expense -0- Salaries expense 32.350 Rent expense 14,000 Supplies expense 2.000 Utilities expense 6.000 Totals 351,150 351,150 Information necessary to prepare the year-end adjusting entries appears below. 1. The office equipment was purchased in 2019 and is being depreciated using the straight-line method over a ten-year useful life with no salvage value. 2. Accrued salaries at year-end should be $4,500. 3. The company borrowed $30,000 on September 1, 2021. 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, 2021, adjusting entries. EXCALIBUR CORPORATION Worksheet December 31, 2021 Account title Unadjusted Trial Balance Credit Adjusting Entries Debit Credit Adjusted Trial Balance Debit Credit Income Statement Debit Credit Balance Sheet Debit Credit Debt Cash Accounts receivable Supplies Prepaid rent Inventory Office equipment Accumulated depreciation equip. Accounts payable Salaries payable Notes payable Interest payable Common stock Retained earnings Dividends Sales revenue Cost of goods sold Interest expense Salaries expenses Rent expense Supplies expense Utilities expense Depreciation expense Net Income Totals EXCALIBUR CORPORATION Income Statement For the Year Ended December 31, 2021 Sales revenue Cost of goods sold Gross profit Operating expenses: Salaries expense Rent expense Supplies expensa Utilities expense Depreciation expense Total operating expenses Operating income Other Expense: Interest expense Net income EXCALIBUR CORPORATION Statement of Shareholders' Equity For the Year Ended December 31, 2021 Total Share- holders' Equity Common Stock Retained Earnings Balance at January 1, 2021 Issue of common stock Net income for 2021 Less: Dividends Balance at December 31, 2021 EXCALIBUR CORPORATION Balance Sheet At December 31, 2021 Assets Current assets: Cash Accounts receivable Supplies Prepaid rent Inventory Total current assets Office equipment Less: Accumulated depreciation Total assets Liabilities and Shareholders' Equity Current liabilities: Accounts payable Salaries payable Notes payable Interest payable Total current liabilities Shareholders' equity: Common stock Retained earnings Total shareholders' equity Total liabilities and shareholders' equity EXCALIBUR CORPORATION General Journal Debit Credit Account Closing entries at December 31, 2021 Sales revenue Retained earnings Retained earnings Cost of goods sold Interest expense Salaries expense Rent expense Supplies expense Utilities expense Depreciation expense Retained earnings Dividends -0 - Try again