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, 2017, year-end.

Account	Unadjusted Balance
Accounts receivable	$	81,400
Accum. deprec., building		122,000
Accum. deprec., equipment		338,000
Advance sales		222,000
Allowance for doubtful accounts		700
Building		427,000
Cash		87,700
Equipment		631,000
Estimated warranty liability		3,800
Income tax expense		30,250
Land		127,000
Merchandise inventory		71,000
Mortgage payable		222,873
Sarah Golden, capital		214,177
Note payable		156,000
Other operating expenses		1,167,000
Sales		1,351,000
Sales returns and allowances		8,200

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 2018; the remaining 25% is from sales earned during 2017. 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, 2017; interest is payable annually each September 30. 5. A partial amortization schedule for the mortgage follows:

Year	Interest Expense			Principal Portion			Annual Payment*			Principal Balance at Dec. 31
2015	$	11,586		$	21,393		$	32,979		$	268,260
2016		10,730			22,249			32,979			246,012
2017		9,840			23,139			32,979			222,873
2018		8,915			24,064			32,979			198,809
2019		7,952			25,027			32,979			173,782

*Payments are made annually each January 2.

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 $62,200. 8. The balance in Income Tax Expense represents taxes accrued and paid for the 2017 year at the rate of $2,750 per month. Assume the income tax rate is 20%.

Required: 1. Based on the information provided, journalize the adjusting entries at December 31, 2017. (Round the final answers to 2 decimal places.)

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.)