BE3-7 Suppose Hoosiers, a specialty clothing store, rents space at a local mall for one year, paying $25.200 in advance on October 1. ($25,200/12 months $2,100 per month.) (1) Record the payment of rent in advance on October 1. pve facoen 25200 25200 (2) Record the adjusting entry on December 31. Rent syrerse (3) Calculate the year-end adjusted balances of Prepaid Rent and Rent Expense (assuming the balance of Prepaid Rent at the beginning of the year is $0). BE3-8 Mountaineer Excavation operates in a low-lying area that is subject to heavy rains and flooding. Because of this, Mountaineer purchases one year of flood insurance, paying $36,000 ($3,000/month) in advance on March 1. (1) Record the purchase of insurance in advance on March 1. (2) Record the adjusting entry on December 31. (3) Calculate the year-end adjusted balances of Prepaid Insurance and Insurance Expense (assuming the balance of Prepaid Insurance at the beginning of the year is $0) BE3-9 Beaver Construction purchases new equipment for $50,400 cash on April 1, 2018. At the time of purchase, the equipment is expected to be used in operations for seven years (84 months) and have no resale or scrap value at the end. Beaver depreciates equipment evenly over the 84 months ($600/month). (1) Record the purchase of equipment on April 1. (2) Record the adjusting entry for depreciation on December 31, 2018. (3) Calculate the year-end adjusted balances of Accumulated Depreciation and Depreciation Expense (assuming the balance of Accumulated Depreciation at the beginning of 2018 is $0)