Review Problem Harriet's Hats Ltd. Balance Sheet December 31, 2018 $ 8,000 3,000 Assets Current Assets: Cash Accounts Receivable Prepaid Rent Inventories Total Current Assets Property, Plant and Equipment (net) Total Assets 500 1.000 $12,500 16,500 $29.000 Liabilities and Owner's Equity Current Liabilities: Accounts Payable Accrued Wages Accrued Interest Unearned Revenue Notes Payable Total Current Liabilities Common Stock Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity $ 2,250 170 90 250 2,700 $ 5,460 15,000 8,540 $23,540 $29,000 1. On September 1, 2019, the company issued a short-term note for $3,000 and on the same date retired the note that was outstanding at the beginning of the 2019. The old note had a 10 percent interest rate, had been issued on September 1, 2013, and required semi-annual interest payment on February 28 and August 31. The new note carried an 8 percent interest rate with similar payment terms. 2. Rent payments of $1,800 each were made on March 1 and September 1. The payments were for rent on office building and were prepaid for six months. 3. Sales employees were paid $12,000 in salaries during 2019. Records indicate that salaries earned for the last week of December amounted to $250 and would be paid on January 7, 2015 (a two week pay period). 4. Gift cards, good for one year, sold during 2019: $10,100. On 12/31/2019 discovers gift cards redeemed during the year: $9,650. REQUIRED: Using the information in the balance sheet and information provided above, prepare 2019 journal entries, including the adjusting entries on 12/31/2019, to record transactions related to interest on note, rent, salaries, and gift cards