4-0 Instructions For each of the above numbered paragraphs, prepare the necessary adjusting entry (including an explanation). Using figures from the company's unadjusted trial balance in conjunction with the adjusting entries made in part a, compute net income for the year ended December 31, 2005. Was the studio's monthly rent for the last 2 months of 2005 more or less than during the firsth 10 months of the year? Explain your answer. Was the studio's monthly insurance expensefor the last five months of 2005 more or less thantheaverage monthly expensefor the first seven monthsof the year ? Explain your answer? If the studio purchased all of its equipmentwhen it first began operations, for how many monthshas it been in business ? Explain your