Question

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. Credits Debits 86,335 28,500 e 70,500 89,000 Account Title Cash Accounts receivable Supplies Prepaid rent Inventory Office equipment Accumulated depreciation Accounts payable Salaries payable Notes payable Common stock Retained earnings Dividends Sales revenue Cost of goods sold Interest expense Salaries expense Rent expense Supplies expense Utility expense Totals 11,570 38,700 5,400 32,100 135,000 21,350 10,125 270,000 140, eee 61,150 19,400 2,560 6,550 514, 120 514, 120

Answer 1

Account Titles Income Statement Debit ($) Credit (S) Unadjusted Trial Balance Debit ($) Credit ($) 86,335 28,500 70,500 89,000 11,570 38,700 5,400 32,100 Cash Accounts Receivable Supplies Prepaid Rent Inventory Office Equipment Accumulated Depreciation Accounts Payable Salaries Payable Notes Payable Interest Payable Common Stock Retained Earnings Dividends Sales Revenue Cost of Goods sold Interest Expense Salaries Expense Rent Expense Supplies Expense Utilities Expense Depreciation Expense Excalibur Corporation Worksheet December 31, 2021 Adjusting Entries Adjusted Trial Balance Debit ($) Credit ($) Debit ($) Credit ($) 86,335 28,500 640 640 1,450 1,450 70,500 89,000 11,125 22,695 38,700 8,100 13,500 32,100 1,070 1,070 1,35,000 21,350 10,125 2,70,000 1,40,000 1,070 1,070 8,100 69,250 1,450 17,950 640 1,920 6,550 11,125 11,125 Balance Sheet Debit (S) Credit (S) 86,335 28,500 640 1,450 70,500 89,000 22,695 38,700 13,500 32,100 1,070 1,35,000 21,350 10,125 1,35,000 21,350 10,125 2,70,000 2,70,000 1,40,000 61,150 19,400 2,560 6,550 1,40,000 1,070 69,250 17,950 1,920 6,550 11,125 Net Income 22,135 2,70,000 22,135 2,86,550 5,14,120 5,14,120 22,385 22,385 5,34,415 5,34,415 2,70,000 2,86,550

Excalibur Corporation Balance Sheet At December 31, 2021 Assets Excalibur Corporation Income Statement For the Year Ended December 31, 2021 Sales Revenue 2,70,000.00 Cost of Goods Sold -1,40,000.00 Gross Profit 1,30,000.00 Expenses: Interest Expense -1,070.00 Salaries Expense -69,250.00 Rent Expense -17,950.00 Supplies Expense -1,920.00 Utilities Expense -6,550.00 Depreciation Expense -11,125.00 Excalibur Corporation Statement of Shareholders' Equity For the Year Ended December 31, 2021 Common Stock Retained Earnings Total Stockholders' Equity 1,35,000.00 21,350.00 1,56,350.00 22,135.00 22,135.00 -10,125.00 -10.125.00 1,35,000.00 33,360.00 1,68,360.00 Current Assets: Cash Accounts Receivable Supplies Prepaid Rent Inventory Total Current Assets Non-Current Assets: Office Equipment Accumulated Depreciation Total Non-Current Assets Beginning Balance Net Income Dividend Ending Balance 86,335.00 28,500.00 640.00 1,450.00 70,500.00 1,87,425.00 89,000.00 -22,695.00 Net Income 22,135.00 22,135.00 66,305.00 2,53,730.00 53,270.00 Total Assets Liabilities & Shareholders' Equity Current Liabilities: Accounts Payable 38,700.00 Salaries Payable 13,500.00 Interest Payable 1,070.00 Total Current Liabilities Non Current Liabilities Notes Payable 32,100.00 Total Non-Current Liabilities Owners' Equity : Common Stock 1,35,000.00 Retained Earnings 33,360.00 Total Shareholders' Equity Total Liabilities and Shareholders' Equity 32,100.00 1,68,360.00 2,53,730.00

Credit ($) Debit ($) 2,70,000.00 Date Account Title & Explanation Dec.31 2021 Sales Revenue Cost of Goods sold Interest Expense Salaries Expense Rent Expense Supplies Expense Utilities Expense Depreciation Expense Income Summary (To Record Revenue & Expense) Dec.31 2021 Income Summary Dividends Retained Earnings (To Close Income Summary & Dividend) 1,40,000.00 1,070.00 69,250.00 17,950.00 1,920.00 6,550.00 11,125.00 22,135.00 22,135.00 10,125.00 12,010.00