Prepare the Adjusting Journal Entries

On September 30, the following adjustments must be made:

Depreciation of baking equipment transferred to company on 7/13. Assume a half month of depreciation in July using the straight-line method.

Accrue interest for note payable. Assume a full month of interest for July. (6% annual interest on $10,000 loan from parents.)

Record insurance used for the year.

Actual baking supplies on-hand as of September 30 are $1,100.

Office supplies on-hand as of September 30 are $50.