Step 6: You will use the "Adjusting Entries\" tab in your workbook to complete the following entries. See sample for Depreciation of Baking Equipment. Take the adiusting entries from this worksheet and enter them into the trial balance on the Steps 5 and 7 Trial Balance tab. On December 31, the following adjustments must be made: ' Depreciation of baking equipment transferred to company on 12/ :i 3. Assume 16 month of depreciation in July using the straight-line method, and full month of depreciation for November and December. ' Accrue interest for note payable. Assume a full month of interest for October. (5% annual interest on $5,000 loan from parents. ' Record insurance used for the year. Actual baking supplies on-hand as of December Blst is $1400. ' Misc. supplies on-hand as of December Blst is $250