This is all the data given:

Before we prepare the adjusting entries, we must do the assumptions. This will allow us to connect the cells throughout the rest of the workbook. I just need help on how to prepare the assumptions before I can move on to the entries. I already started but I am not sure if I am doing it right. Please help.

Use the following information to prepare adjusting entries for Broomfield Industries: a. On July 1, 2019, Broomfield Industries signed a 4.2% bank loan due in 3 years. This is the only outstanding note payable. b. Prepaid insurance represents a 12-month insurance policy purchased on May 1. c. On November 1, 2019, Broomfield Industries paid $12,780 for a 4-month lease for office space. d. Unearned revenue represents a 8-month contract for consulting services. The payment was received on October 1, 2019. e. Supplies on hand total $4,674. f. Equipment is depreciated on a straight-line basis; residual value is estimated to be $12,000 with an estimated service life of 10 years. The assets were held the entire year. g. On August 1, Broomfield Industries issued Denver Supplies an 9-month note receivable at a 5.7% annual interest rate. The company uses the percentage-of-receivables basis for estimating uncollectible accounts. The aging schedule of accounts receivable must be completed to determine management's desired balance for 2019. Accrued wages totaling $71,490 were unpaid and unrecorded at December 31, 2019. Utility costs incurred but unrecorded for the month of December were estimated to be $12,314. Assumptions 4.20% Timmmmst Interest rate on note payable Interest policy term in months used Policy overall 12 00 Prepaid insurance policy for 12 months in terms of months used Prepaid insurance policy for 12 months