Problem $13-4($Algo$)$ Various liabilities; financial statement effects $[$LO$13-1,13-2,13-3,13-4]$

The unadjusted trial balance of the Manufacturing Equitable at December $31,2024,$ the end of its fiscal year, included the following account balances. Manufacturing$$s $2024$ financial statements were issued on April $1,2025.$

Accounts receivable$ $95,250$Accounts payable$42,80012\%$ notes, payable to bank$601,000$Mortgage note payable$1,490,000$

Other information:

The bank notes, issued August $1,2024,$ are due on July $31,2025,$ and pay interest at a rate of $12\%,$ payable at maturity.

The mortgage note is due on March $1,2025.$ Interest at $11\%$ has been paid up to December $31($assume $11\%$ is a realistic rate$).$ Manufacturing intended at December $31,2024,$ to refinance the note on its due date with a new $10-$year mortgage note. In fact, on March $1,$ Manufacturing paid $$480,000$ in cash on the principal balance and refinanced the remaining $$1,010,000.$

Included in the accounts receivable balance at December $31,2024,$ were two subsidiary accounts that had been overpaid and had credit balances totaling $$19,350.$ The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases.

On November $1,2024,$ Manufacturing rented a portion of its factory to a tenant for $$25,200$ per year, payable in advance. The payment for the $12$ months ended October $31,2025,$ was received as required and was credited to deferred revenue.

Required:

Prepare any necessary adjusting journal entries at December $31,2024,$ pertaining to each item of other information $($a$$d$).$

Prepare the current and long$-$term liability sections of the December $31,2024,$ balance sheet.

on March $1,$ M$$nufacturing pald $$480,000$ in cash on the principal balance and refinanced the remalning $$1,010,0000.$

c$.$ Included in the accounts recelvable balance at December $31,2024,$ were two subsidlary accounts that had been overpald and

had credit balances totaling $$19,350.$ The accounts were of two major customers who were expected to order more merchandise

from Manufacturing and apply the overpayments to those future purchases.

Required:

Prepare any necessary adjusting Journal entries at December $31,2024,$ pertaining to each Item of other Information $($a$-$d$).$

Prepare the current and long$-$term llability sections of the December $31,2024,$ balance sheet.

Complete this question by entering your answers in the tabs below.

Required $1$

Prepare any necessary adjusting journal entries at December $31,2024,$ pertaining to each item of other information $($a$-$d$).$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

The Bank notes, issued August $1,2024,$ are due on July $31,2025,$ and pay

interest at a rate of $12\%,$ payable at maturity.

Note: Enter debits before credits. on March $1,$ M$$nufacturing paid $\backslash (\backslash$$ $480,000\backslash )$ in cash on the principal balance and refinanced the remaining $\backslash (\backslash$$ $1,010,0000\backslash ).$

c$.$ Included in the accounts recelvable balance at December $31,2024,$ were two subsidiary accounts that had been overpald and had credit balances totaling $\backslash (\backslash$$ $19,350\backslash ).$ The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases.

d$.$ On November $1,2024,$ Manufacturing rented a portion of its factory to a tenant for $\backslash (\backslash$$ $25,200\backslash )$ per year, payable in advance. The payment for the $12$ months ended October $31,2025,$ was recelved as required and was credited to deferred revenue.

Required:

$1.$ Prepare any necessary adjusting Journal entries at December $31,2024,$ pertalning to each item of other information $($a$-$d$).$

$2.$ Prepare the current and long$-$term liability sections of the December $31,2024,$ balance sheet.

Complete this question by entering your answers in the tabs below.

Prepare the current and long$-$term liability sections of the December $31,2024,$ balance sheet.