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	Unadjusted Balance			Account		Unadjusted Balance
Accounts receivable	$	81,600		Land	$	129,000
Accum. deprec., building		124,000		Merchandise inventory		71,400
Accum. deprec., equipment		340,000		Mortgage payable		224,498
Advance sales		224,000		Sarah Golden, capital		209,662
Allowance for doubtful accounts		600		Note payable		168,000
Building		431,000		Other operating expenses		1,169,000
Cash		87,900		Sales		1,353,000
Equipment		635,000		Salaries & admin expense		34,460
Estimated warranty liability		4,000		Sales returns and allowances		8,400

Other information:

Assume all accounts have a normal balance.

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.

Golden warranties its wedding dresses against defects and estimates its warranty liability to be 1.5% of adjusted net sales.

The 2.5%, 5-year note payable was issued on October 1, 2020; interest is payable annually each September 30.

The mortgage is paid annually on the first day of the next year. The next mortgage payment will be paid consisting of $8,980 interest and $24,199 principal for a total of $33,179.

Uncollectible accounts are estimated to be 1.5% of outstanding receivables.

A physical count of the inventory showed a balance actually on hand of $62,400.

Sarah promised her operations manager a year-end performance bonus of $1,521, 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.

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.)