E3-20B (Adjusting and Reversing Entries) When the accounts of David Nguyen Inc. are examined, the adjusting data listed below are uncovered on December 31, the end of an annual fiscal period. A. INSTRUCTIONS: For 1-4, Record Adjusting entry in the journal & then post below-enter post ref # 1. The prepaid insurance account shows a debit balance of $7,200, representing the cost of a 2-year fire insurance policy beginning August 1 of the current year. Date Account Title Post Ref Debit Credit Prepaid Insurance #115 Insurance Expense # 515 8/1 7,2002. On November 1, Rental Revenue was credited for $1,500, representing revenue from a sub rental for a 3month period beginning on that date. Date Account Title Post Debit [iedit Unearned Rental Revenue #220 Rental Revenue #420 llfl 1,500 3.Purchase of advertising supplies for $1,000 during the year was recorded in the Advertising Expense account. On December 31, advertising supplies of $300 are on hand. Date Account Title Post Ref Debit Credit Advertising Supplies #125 Advertising Expense #525 1,0004. Interest of $850 has accrued on notes payable. Date Account Title Post Ref Debit Credit Interest Expense #530 Interest Payable #215 (b) Indicate which of the above adjusting entries should be reversed. 3. 2. 4