Gauge Construction Company is making adjusting entries for the year ended March $31$ of the current year. In developing information

for the adjusting entries, the accountant learned the following:

a$.$ The company paid $$3,500$ on January $1$ of the current year to have advertisements placed in the local monthly neighborhood

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 Construction Equipment were obtained from the records and

supporting documents.

Construction equipment $($at cost$)$

Accumulated depreciation $($through March $31$ of the prior year$),145,600$

Estimated annual depreciation for using the equipment $,40,800$

Required:

Record the adjusting entry for advertisements at March $31$ of the current year.

Record the adjusting entry for the use of construction equipment during the current year.

What amounts should be reported on the current year's income statement for the following items?

What amounts should be reported on the current year's balance sheet for the following items?

Complete this question by entering your answers in the tabs below.

Record the adjusting entry for advertisements at March $31$ of the current year.

Record the adjusting entry for the use of construction equipment during the current year.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. $1.$ Record the adjusting entry for advertising at March $31,$ assuming that the advertising purchased during the current year was debited in full to the account Prepaid Advertising. $2.$ Record the adjusting entry for the use of the construction equipment at March $31.$