Question 1 (20 marks) Highlight Company's unadjusted and adjusted trial balances on December 31 of the current year are as follows: Highlight Trial Balances For Year Ended December 31 Unadjusted Trial Balance Adjusted Trial Balance Debit Credit Debit Credit 10,400 15,280 1,850 2,500 80,000 4,000 2,500 10,000 Cash Accounts receivable Office supplies Prepaid rent Building Accumulated depreciation-building Accounts payable Wages payable Long-term notes payable Interest payable Unearned consulting revenue Taylor, Capital Consulting revenue Wages expense Rent expense Interest expense Supplies expense Depreciation expense building Totals 10,400 15,990 750 600 80,000 6,000 2,500 750 10,000 300 3,000 70,000 45,040 19,250 6,700 800 1,100 2,000 137,590 137,590 4,200 70,000 43,130 18,500 4,800 500 133,830 133,830 1. Present the seven adjusting entries in general journal form that explain the changes in the account balances from the unadjusted to the adjusted trial balance. (14 marks) 2. Compute the net profit/loss based on the adjusted trial balance. Please show your calculation process to determine the total revenue, total expenses and the net profit/loss. (2 marks) 3. What are the impacts on total assets and total liabilities if these adjustments are not recorded? Please show you analysis process. (Hints: You are required to determine the total assets and total liabilities before and after the adjustments. You are also required to determine whether the total assets and total liabilities would be overstated or understated if these adjustments are not recorded in your analysis.) (4 marks)