La Mancha Enterprises completed all of its March 31, 2023, adjustments in preparation for compiling its financial statements, which resulted in the following trial balance.

Other information:1. All accounts have normal balances.2. $34,200 of the mortgage balance is due beyond March 31, 2024.The final task in the year-end process was to assess the assets for impairment, which resulted in the following schedule.

Required1. Prepare the entry (entries) to record any impairment losses at March 31, 2023. Assume the company recorded no impairment losses in previous years.2. Prepare a classified balance sheet at March 31, 2023.

Analysis Component:How does the recording of an impairment loss affect equity, if at all?

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Account Accounts payable Accounts receivable Accumulated depreciation, computer equipment Accumulated depreciation, machinery Accumulated depreciation, warehouse Allowance for doubtful accounts Cash Computer equipment Expenses, including cost of goods sold Joy La Mancha, capital Land Machinery Mortgage payable Office supplies Revenues Salaries payable Warehouse Balance $ 14,750 57,500 40,250 152,500 286,500 6,000 35,000 72,500 1,246,750 407,875 145,000 241,250 93,750 4,875 1,227,500 33,750 460,000