Sarah Company's trial balance on December 31 (the end of its annual accounting period), included the following account balances betore adjustments: Reviewing the company's recorded transactions and accounting records, you find the following data pertaining to the December 31 ad,ustments: 1. On July 2, the company had accepted a $10,000,9-month, 10% (annual rate) note receivable from a customer. The interest is to be coliected when the note is collected. 2. On August 2, the company had paid $3,000 for a 2-year insurance policy. 3. The bulking was acquired 10 years ago and is being depreciated using the straight-line method over a 25 -year life. It has an estimated residual value of $8,000. 4. The delivery equipment was purchased on April 2. It is to bo depreciated using the straight-line method over a 10-year life, with an estimated residual value of $2,000. 5. On September 1, the company had received 2 yeare' rent in advanco (\$4,320) for a portion of a building it is renting to Victoria Cempany. 6. On December 1, the company had issued a $7,200,3-month, 12\% (annual rate) note payable to a supplier. The interest is to be paid when the note is paid. 4. The delivery equipment was purchased on April 2. It is to be depreciated using the straight-line method over a 10-year life, with an estimated residual value of $2,000 5. On September 1, the company had received 2 years' rent in advance ($4,320) for a portion of a bulding it is tenting to Victoria Company. 6. On December 1 , the company had issued a $7,200,3 month, 12% (annual rate) note payable to a supplier. The interest is to be paid when the note is paid. 7. On January 2, the company purchased $1,000 of office supplies. A physical count on December 31 revealed that there are $400 of otfice supplies stif on hand. No supplies were on hand at the beginning of the year. Required: Prepare the adjusting entries that are necessary to bring Sarah's accounts up to date on December 31