The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its fiscal year, included the following account balances. Manufacturings 2021 financial statements were issued on April 1, 2022.

Accounts receivable	$	98,000
Accounts payable		38,800
9% notes, payable to bank		638,000
Mortgage note payable		1,290,000

Other information:

1. The bank notes, issued August 1, 2021, are due on July 31, 2022, and pay interest at a rate of 9%, payable at maturity.
2. The mortgage note is due on March 1, 2022. Interest at 8% has been paid up to December 31 (assume 8% is a realistic rate). Manufacturing intended at December 31, 2021, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $275,000 in cash on the principal balance and refinanced the remaining $1,015,000.
3. Included in the accounts receivable balance at December 31, 2021, were two subsidiary accounts that had been overpaid and had credit balances totaling $16,500. The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases.
4. On November 1, 2021, Manufacturing rented a portion of its factory to a tenant for $38,400 per year, payable in advance. The payment for the 12 months ended October 31, 2022, was received as required and was credited to rent revenue.

Required: 1. Prepare any necessary adjusting journal entries at December 31, 2021, pertaining to each item of other information (ad). 2. Prepare the current and long-term liability sections of the December 31, 2021, balance sheet.

Prepare any necessary adjusting journal entries at December 31, 2021, pertaining to each item of other information (ad). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No	Transaction	General Journal	Debit	Credit
1	a	Interest expense	23,925
		Interest payable		23,925
2	b	No journal entry required
3	c	Accounts receivable	16,500
		Deferred revenue		16,500
4	d	Rent revenue	32,000
		Deferred rent revenue		32,000

Prepare the current and long-term liability sections of the December 31, 2021, balance sheet.

Manufacturing Equitable
Balance Sheet (partial)
At December 31, 2021
Current liabilities:
Accounts payable	$38,800
9% notes payable, due July 31, 2022	638,000
Current portion of long-term debt	275,000
Accrued interest payable	16,500
Deferred rent revenue
Total current liabilities	968,300
Long-term liabilities:
Total Long-term Liabilities	0
Total Liabilities	$968,300