Question 34 Not yet answered Marked out of 16.00 P Flag question Highland Company has a Dec 31 year end and adjusts their accounts annually. The following information is available for the preparation of adjusting journal entries for the Dec 31, 2019 year end 1) The December 31, 2019 unadjusted trial balance showed a debit balance of $30,000 in the prepaid insurance account. A review of Highland's insurance policies revealed $6,000 of unexpired insurance remaining at December 31, 2019. 2) The December 31, 2019 unadjusted trial balance showed a credit balance of $36,000 in the notes payable account. The 8% note was signed on June 1, 2019. Interest and principal are due on March 31, 2020. 3) The total weekly salaries expense for all employees is $12,600. This amount is paid at the end of the day on Friday of each week with five working days. December 31 falls on a Wednesday this year, which means that the employees had worked three days since the last payday. The next payday is January 2. Ignore statutory holidays in your calculations 4) The December 31, 2019 unadjusted trial balance showed a debit balance of $20,000 in the equipment account. Highland purchased the equipment on March 31, 2018 and planned to use it for 5 years. The equipment has a physical life of 20 years. Required 1. Prepare any adjusting journal entries required by Highland at December 31, 2019 for parts 1) to 4) above. (10 marks) 2. Prepare the journal entry or entries to record the payroll for the first week of January 2020. (2 marks) 3. Prepare the journal entry or entries when interest and principal of the $36,000 note payable are repaid on March 31, 2020. (4 marks)