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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 $ $97,250$

Accounts payable $52,600$

$15\%$ notes, payable to bank $618,000$

Mortgage note payable $1,334,000$

Other information:

The bank notes, issued August $1,2024,$ are due on July $31,2025,$ and pay interest at a rate of $15\%,$ payable at maturity.

The mortgage note is due on March $1,2025.$ Interest at $14\%$ has been paid up to December $31($assume $14\%$ 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 $$352,000$ in cash on the principal balance and refinanced the remaining $$982,000.$

Included in the accounts receivable balance at December $31,2024,$ were two subsidiary accounts that had been overpaid and had credit balances totaling $$18,400.$ 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 $$29,400$ 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.

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