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Let's solve the given problem systematically, addressing the requirements step-by-step.

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### **Step 1: Adjusting Journal Entries**
Below are the necessary year-end **adjusting entries** based on the provided information.

1. **Depreciation on Office Equipment**  
   **Straight-line depreciation formula:**  
   \[ \text{Annual Depreciation} = \frac{(71,000 - 2,000)}{12} = \frac{69,000}{12} = 5,750 \]  
   **Journal Entry:**  
   ```
   Dr Depreciation Expense         5,750
   Cr Accumulated Depreciation     5,750
   ```

2. **Accrued Salaries (To be paid January 5th, 2025)**  
   Salaries earned but unpaid: $5,400  
   **Journal Entry:**  
   ```
   Dr Salaries Expense            5,400
   Cr Salaries Payable            5,400
   ```

3. **Interest Payable on Notes**  
   Note principal: $29,400  
   Interest rate: 6% annual (quarterly interest payments)  
   \[ \text{Interest for Sep 1 to Dec 31 (4 months)} = 29,400 \times 0.06 \times \frac{4}{12} = 588 \]  
   **Journal Entry:**  
   ```
   Dr Interest Expense            588
   Cr Interest Payable            588
   ```

4. **Supplies Adjustment**  
   Supplies at start: $2,900  
   Ending supplies: $460  
   \[ \text{Supplies used} = 2,900 - 460 = 2,440 \]  
   **Journal Entry:**  
   ```
   Dr Supplies Expense            2,440
   Cr Supplies                    2,440
   ```

5. **Prepaid Rent Adjustment**  
   Rent paid for two years on April 30: $23,000  
   \[ \text{Portion used in 2024} = 23,000 \times \frac{8}{24} = 7,667 \]  
   **Journal Entry:**  
   ```
   Dr Rent Expense                7,667
   Cr Prepaid Rent                7,667
   ```

6. **Unearned Revenue Adjustment**  
   $1,000 collected on December 25, but service (game delivery) will occur on January 2.  
   **Journal Entry:**  
   ```
   Dr Cash                        1,000
   Cr Unearned Revenue            1,000
   ```

7. **Fire Insurance Expense Adjustment**  
   Insurance premium: $1,200 annually (paid on July 31)  
   \[ \text{Expense for 2024} = 1,200 \times \frac{5}{12} = 500 \]  
   **Journal Entry:**  
   ```
   Dr Insurance Expense           500
   Cr Prepaid Insurance           500
   ```

8. **Accounts Receivable Adjustment**  
   Anmar’s purchase made on December 28: $ (assume revenue booked)  
   This entry impacts accounts ...

Prepare the necessary journal entries, adjusted trial balance, and closing entries based on the given financial information for Excalibur Corporation.

Learn how to prepare adjusting journal entries, an adjusted trial balance, and closing entries for Excalibur Corporation, covering depreciation, accrued salaries, interest payable, unearned revenue, and more.

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