E4-6 (Algo) Recording Adjusting Entries and Reporting Balances in Financial Statements L04-1, 4-2 Gauge Construction Company is making adjusting entries for the year ended March 31 of the curront year. In deveioping information for the adjusting entries, the accoumant learned the following : a. The company paid $2,800 on January 1 of the current year to have advertisements placed in the local monthly neighborhood papec. The ads were to be run from January through June. The bookkeoper debited the full amount to Prepaid Advertising on January 1 . b. At March 31 of the current year, the following data retating to Construction Equipment were obtained from the records and supporting documents. Required: 1. Record the adjusting entry for advertisements at March 31 of the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Journal entry worksheet Record the adjusting entry reloted to advertisements houtei Ehtar debent pefiege credent. 2. Record the adjusting entry for the use of construction equipment during the current year, lif no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the adjusting entry reiated to the use of construction equipment. Motel take decats before credas. 3. What amount should be reported on the current year's income statement for Advertising Expense? For Depreciation Expense? 4. What amount should be reported on the current year's balance sheet for Prepaid Advertising? For Construction Equipment (at net book value)