1) Insurance expired during year 2,000

Insurance Expense 2,000 (Dr.)
Unexpired insurance 2,000 (Cr.)

2) Estimated bad debt 1% of sales

Bad debt expense 400 (Dr.)
Allowance for bad debt 400 (Cr.)

(A/C receivable 40,000 x 1% = 400)

3) Depreciation on furniture & equip.10% per year

Depreciation Expense 11,000 (Dr.)
Accumulated Depecrication 11,000 (Cr.)

(Furniture& equip. 125,000 - 15,000 x 10% = 11,000)

4) Interest at 9% is receivable on note for one full year

Interest receivable 630 (Dr.)
Interest revenue 630 (Cr.)

(Notes receivable 7,000 x 9% = 630)

5) Rent paid in advance 5,400 (originally charged to expense)

Prepaid Rent 5,400 (Dr.)
Rent Expense 5,400 (Cr.)

i.e. End of month adjusting entery will be:

Rent Expense 5,400 (Dr.)
Prepaid Rent 5,400 (Cr.)

6) Accrued salaries at Dec, 31, 5,800

Salaries Expense 5,800 (Dr.)
Salaries Payable 5,800 (Cr.)

(To record unrecorded expense)