Golden Wedding Dress Company designs custom wedding dresses for brides to be. The person preparing the adjusting entries at year-end was unable to complete the adjustments due to illness. You have been given the following unadjusted trial balance along with some additional information for the December 31, 2020, year-end. Account Accounts receivable Accum. deprec., building Accum. deprec., equipment Advance sales Allowance for doubtful accounts Building Cash Equipment Estimated warranty liability Unadjusted Balance Account $ 82,800 Land 136,000 Merchandise inventory 352,000 Mortgage payable 236,000 Sarah Golden, capital 800 Note payable 455,000 Other operating expenses 89,100 Sales 659,000 Salaries & admin expense 5,200 Sales returns and allowances Unadjusted Balance $ 141,000 73,800 234,251 222,569 170, eee 1,181, eee 1,365,000 30,520 9,600 Other information: 1. Assume all accounts have a normal balance. 2. 80% of the balance in the Advance Sales account is for wedding dresses to be made and delivered by Golden during 2021; the remaining 20% is from sales earned during 2020. 3. Golden warranties its wedding dresses against defects and estimates its warranty liability to be 3% of adjusted net sales. 4. The 4%, 5-year note payable was issued on October 1, 2020; interest is payable annually each September 30. 5. The mortgage is paid annually on the first day of the next year. The next mortgage payment will be paid consisting of $9,370 interest and $25,009 principal for a total of $34,379. 6. Uncollectible accounts are estimated to be 1.5% of outstanding receivables. 7. A physical count of the inventory showed a balance actually on hand of $63.600. 8. Sarah promised her operations manager a year-end performance bonus of $1,042, which would be paid with her salary in January for high sales achieved this year. Required: 1. Based on the information provided, journalize the adjusting entries at December 31, 2020. View transaction list X 1 Record to adjust for earned sales. > 2 Record the estimated warranty liability. 3 Record the accrual of interest expense on the note payable. 4 Record the accrual of interest on mortgage payable. bit Credit 5 Record to adjust for estimated uncollectible accounts. 6 Record to adjust for shrinkage. 7 Record the adjustment for salaries owing. Note : | = journal entry has been entered 2. Prepare a classified balance sheet. (Be sure to list the assets and liabilities in order of their liquidity. Round the final answers to the nearest whole dollar amount.) GOLDEN WEDDING DRESS COMPANY Balance Sheet December 31, 2020 Assets Current assets: Total current assets Property, plant and equipment: Total property, plant and equipment Total assets Liabilities Current liabilities: Total current liabilities Non-current liabilities: Total liabilities Equity Total liabilities and equity
