Step 6: Prepare the Unadjusted Trial Balance Use the T-account balances completed in the previous step to prepare the adjusted trial balance portion of the Worksheet tab in your Excel workbook. Step 7a: Make Adjusting Entries On September 30, the following adjustments must be made: a. Depreciation of baking equipment transferred to company on July 1st. Depreciation is computed using the straight-line method. The equipment has a 5-year useful life, and an original cost of $10,000 b. Accrue interest for note payable The annual interest on $10,000 loan from parents is 3%. Interest is payable quarterly. c. Record insurance used for the year. Assume a full month for August. d. Actual baking supplies on-hand as of September 30 is $500. e. Misc. supplies and as of September 30th is $100. Step 7b: Transfer Adjusting Entries to the Worksheet Transfer your adjusting journal entries to the Adjustments columns of the Worksheet. Step 8: Adjusted Trial Balance Apply adjusting entries to the trial balance to create the adjusted trial balance. Adjusting entries from Step 6 will apply to affected accounts in the unadjusted trial balance to arrive at the adjusted trial balance