M4-5 (Algo) Determining Financial Statement Effects of Adjusting Entries (Deferred Accounts) LO4-1 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. a. Collected $2,400 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. b. Purchased a machine for $34,000 cash on January 1 . The company estimates annual depreciation at $3,800. c. Paid $3,300 for a two-year insurance premium on July 1 of the current year; debited Prepaid Insurance for that amount