Q4 a) On February 1, Watson Storage agreed to rent Hillbourne Manufacturing warehouse space for $175 per month. Hillbourne Manufacturing paid the first three months' rent in advance.. (Marks 5) I. Prepare the necessary adjusting entry for Hillbourne Manufacturing on February 28, assuming it recorded the expenditure on February 1 as Prepaid Rent. II. II. Prepare the necessary adjusting entry for Watson Storage on February 28, assuming it recorded Hillbourne Manufacturing's payment as Unearned Rent Revenue. b) On January 2, 2006, Hagen Corporation purchased equipment costing $72,000. Hagen performs adjusting entries monthly.. (Marks 5) i). Record this equipment's depreciation expense on December 31, 2011, assuming its estimated life was eight years on January 2, 2006. ii). Determine the amount of the equipment's accumulated depreciation reported in the balance sheet dated December 31, 2011