E4-6 Recording Adjusting Entries and Reporting Balances in H auge Construction Company is making adjusting entries for the year ended March 31 of the curren developing information for the adjusting entries, the accountant learned the following: company pai year. In d $1,800 on January 1 of the current year to have advertisements placed in the local keeper a. The monthl y neighborhood paper. The ads were to be run from January through June. The book debited the full amount to Prepaid Advertising on January 1. b. At March 31 of the current year, the following data relating to Construction Equipment were obtained from the records and supporting documents. Construction equipment (at cost) Accumulated depreciation (through March 31 of the prior year) Estimated annual depreciation for using the equipment $340,000 132,000 34,000