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 $31,2023,$ year$-$end.

Account Unadjusted

Balance Account Unadjusted

Balance

Accounts receivable $ $81,200$ Land $ $125,000$

Accum. deprec., building $120,000$ Merchandise inventory $70,600$

Accum. deprec., equipment $336,000$ Mortgage payable $221,248$

Advance sales $220,000$ Note payable $170,000$

Allowance for doubtful accounts $500$ Other operating expenses $1,165,000$

Building $423,000$ Sales $1,349,000$

Cash $87,500$ Salaries & admin expense $34,060$

Equipment $627,000$

Sales returns and allowances

$8,000$

Estimated warranty liability $3,600$ Sarah Golden, capital $201,012$

Other information:

Assume all accounts have a normal balance.

$75\%$ of the balance in the Advance Sales account is for wedding dresses to be made and delivered by Golden during $2024$; the remaining $25\%$ is from sales earned during $2023.$

Golden warranties its wedding dresses against defects and estimates its warranty liability to be $2\%$ of adjusted net sales.

The $3\%,5-$year note payable was issued on October $1,2023$; 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 $$8,850$ interest and $$23,929$ principal for a total of $$32,779.$

Uncollectible accounts are estimated to be $1\%$ of outstanding receivables.

A physical count of the inventory showed a balance actually on hand of $$62,000.$

Sarah promised her operations manager a year$-$end performance bonus of $$2,749,$ 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 $31,2023.$

$2.$ 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.$)$