The following information relates to Rudy Simpleton, Realtor, at the close of the fiscal year ending December 31:

1. Rudy paid the local newspaper $335 for an advertisement to be run in January of the next year and charged it to Advertising Expense.

2. On November 1, Rudy signed a three-month, 10% note to borrow $15,000 from Yorkville Bank.

3. The following salaries and wages are due and unpaid at December 31: sales, $1,420; office clerks, $1,060.

4. Interest of $500 has accrued to date on a note that Rudy holds from Grant Muldaur.

5. The estimated loss on bad debts for the period is $1,560.

6. Stamps and stationery are charged to the Office Expense account when purchased; $110 of these supplies remain on hand.

7. Rudy has not yet paid the December rent of $1,000 on the building his business uses.

8. Insurance was paid on November 1 for one year and charged to Prepaid Insurance, $1,170.

9. Property tax accrued, $1,670.

10. On December 1, Rudy accepted Alana Zipursky's two-month, 15% note in settlement of her $6,000 account receivable.

Required

Prepare annual adjusting entries as at December 31.