prepare in journal entry form the adjusting journal entries for the following items.

A) On September 1, 2016 a 12-month insurance policy was purchased for $18,000

B) On January 1, 2016 B&B paid Lorre Advertising $48,000 for two years of advertising services. Equal services are provided in year 1 and year 2.

C) B&B needed some additional storage space so on November 1, 2016 they rented a unit for an annual rate of $10,200. The entire amount was expensed when paid.

D) $4,250 of store supplies were purchased during the year and the asset Store Supplies was increased. $2,100 of these supplies were used during the year.

E) $6,500 of office supplies were purchased during the year and were immediately expensed. A count of the office supplies on hand December 31, 2016, indicates a balance of $500.

F) On October 1, 2016, B&B issued a 9-month note receivable to Greenstreet & Co. at an annual interest rate of 7%. Principal and interest will be paid at the end of the 9-months. The note was recorded in Notes Receivable and is the only note outstanding.

G) Depreciation for store equipment is based on the following: Straight line depreciation Store Equipment Assets were held for the entire year; Residual Value = $3,000; Service life is estimated to be 8 years

H) The Office Equipment was purchased January 1, 2016. Depreciation for office equipment is based on the following: Double-Declining Method Office equipment Assets were held for the entire year; Residual Value = $3,000; Service life is estimated to be 5 years

I) Sales salaries of $6,200 and office salaries of $4,800 remained unpaid at 12/31/16.

J) On May 1, 2016, B&B rented a portion of one store to Paul Henreid Co. The contract was for 10 months and B&B required the 10 months of cash upfront on May 1. The rent is being earned equally over the next 10 months. When cash was received, unearned rent was appropriately recorded.

K) The note payable, due 2020, was outstanding the entire year and a 5.5% interest rate exists on the note. Interest and principal are to be paid on maturity. No interest has been recorded for the year.

L) On October 1, 2016, B&B collected $24,000 for consulting services to be performed from October 1, 2016 to September 30, 2017. The company credited the revenue account when the cash was received.

M) Based on past experience, B&B calculates bad debt expense at 1% of net sales for the year.