Burkholder Corporation borrowed $28,000 from its bank on January 1, 2017, at an annual interest rate of 10 percent. The $28,000 principal is to be paid as a lump sum at the end of the period of the loan, which is after December 31, 2018. This is the only interest-bearing debt held by Burkholder.

The following information is available for Derrick Company: T-Account Balance before Adjustments T-Account Balance after Adjustments Account Prepaid Rent Prepaid Insurance Accumulated Depreciation Salaries Payable Unearned Revenues Service Revenue Rent Expense Insurance Expense Depreciation Expense Salaries and Wages Expense 14,500 8,500 36,000 1,300 800 87,600 6,500 5,500 11,800 7,800 38,400 2,500 600 87,800 9,200 6,200 2,400 4.700 3,500 REQUIRED: Prepare the adjusting journal entries that gave rise to the changes indicated