Excalibur Corporation Worksheeet.pdf - 1 Assignment Print...

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3/15/2018 Assignment Print View ; 1/2 1. Award: 100.00 points Excalibur Corporation sells video games for personal computers. The unadjusted trial balance as of December 31, 2018, appears below. December 31 is the company's fiscal year-end. The company uses the perpetual inventory system. Account Title Debits Credits Cash 23,300 Accounts receivable 32,500 Supplies 0 Prepaid rent 0 Inventory 65,000 Office equipment 75,000 Accumulated depreciation—office equipment 10,000 Accounts payable 26,100 Salaries and wages payable 3,000 Note payable 30,000 Common stock 80,000 Retained earnings 16,050 Sales revenue 180,000 Cost of goods sold 95,000 Interest expense 0 Salaries and wages expense 32,350 Rent expense 14,000 Supplies expense 2,000 Utility expense 6,000 Totals 345,150 345,150 Cash dividends paid to shareholders during the year amounted to $6,000. Information necessary to prepare the year-end adjusting entries appears below. 1. The office equipment was purchased in 2016 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, 2018. 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.
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