In each of the following transactions (a) through (c) for Catena's Marketing Company, indicate the effect of the adjusting entry on the elements of the balance sheet and income statement. Note: Reductions in account balances should be indicated with a minus sign.

1. Collected $1,200 rent for the period December 1 of the current year to April 1 of next year, which was credited to Unearned Rent Revenue on December 1.
2. Purchased a machine for $32,000 cash on January 1. The company estimates annual depreciation at $3,200.
3. Paid $5,000 for a two-year insurance premium on July 1 of the current year; debited Prepaid Insurance for that amount.

Transaction	Balance Sheet	Income Statement
Assets	Liabilities	Stockholders Equity	Revenues	Expenses	Net Income
a.
b.
c.