Selected transactions for Rosewood Industries are presented below. The fiscal year end for the company is April 30. Net income prior to these adjustments is $43,670.

a. The company had purchased a 2-year insurance policy for $2,400 on January 1 and debited the prepaid insurance account.

b. Depreciation on equipment for the month was $600.

c. The company borrowed $15,000 on February 1 at 12% interest. Principal and interest are due on February 1 of the following year.

d. The unadjusted trial balance showed a balance in Supplies of $2,650. A month-end inventory showed $900 on hand.

e. The company loaned $8,000 to a customer on April 1. The note has an annual interest rate of 12% and is due along with accrued interest on March 31 of the following year.

e. Employees had earned $5,600 in salaries as of April 30. These salaries will be paid on May 3.

f. The unadjusted trial balance showed unearned revenues of $7,200. During April, $1,200 of these revenues were earned.

Required:

1. Prepare the necessary adjusting entries for Rosewood Industries as of April 30. Please include explanations.