E4 Recording Adysting Entries and Reporting Balances in Frarcial Statements LO4-1, 4-2 Gauge Construction Compary is making adjusting entries for the year ended March 31 of the current year. In develcping information for the adjusting entries, the accountant learned the folowing: a. The company paid $3,000 on January 1 of the cument year to have advertisements placed in the local monthly neighbohood paper. The ads were to be run from January through June. The bookkeeper debited the full amount to Prepaid Advertising on January 1 b. At March 31 of the current year, the following data relating to Consruction Equipment were obtained from the records and supporting documents Construcion equipment (at cost) Acoumulated depreciason (through March 31 of the prior S460,000 141.600 annual depreciation for using the oquipment Required: 1. Recond the adjusting entry for adverdsements at March 31 of the current year. (If no entry is required for a transactionievent, select "No journal entry required" in the first account field.) list View journal entry worksheet General Journal a. Advertising expense Prepad 2. Recond the adjusting entry for the use of construction equipment during of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet Record the adjusting entry related to construction Note: Enter debits before credits Debit Rocord entry Clear ontry View genoral journal 3. What amount should be reported on the current years income statement for Advertising Expense? For Dopreciation Expense? Depreoation 4. What amount should be reported on the current years balance sheet for Prepaid Adverosing? For Construction Equipment (at net book value)? Prepaid advertisi