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	$	82,200		Land	$	135,000
Accum. deprec., building		130,000		Merchandise inventory		72,600
Accum. deprec., equipment		346,000		Mortgage payable		229,375
Advance sales		230,000		Note payable		164,000
Allowance for doubtful accounts		500		Other operating expenses		1,175,000
Building		443,000		Sales		1,359,000
Cash		88,500		Salaries & admin expense		33,750
Equipment		647,000		Sales returns and allowances		9,000
Estimated warranty liability		4,600		Sarah Golden, capital		222,575

Other information:

1. Assume all accounts have a normal balance.
2. 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.
3. Golden warranties its wedding dresses against defects and estimates its warranty liability to be 2% of adjusted net sales.
4. The 3%, 5-year note payable was issued on October 1, 2023; 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 $9,175 interest and $24,604 principal for a total of $33,779.
6. Uncollectible accounts are estimated to be 1% of outstanding receivables.
7. A physical count of the inventory showed a balance actually on hand of $63,000.
8. Sarah promised her operations manager a year-end performance bonus of $3,055, which would be paid with her salary in January for high sales achieved this year.

1. Based on the information provided, journalize the adjusting entries at December 31, 2023.

• 1Record 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.

   

• 5

  Record to adjust for estimated uncollectible accounts.

   

• 6

  Record to adjust for shrinkage.

   

• 7

  Record the adjustment for salaries owing.

• 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.)