Reconstruct the adjusting that was made to arrive at the ending balance in each situation. Assume that statements and adjusting entries are prepared only once each year. 1. - During the year, an additional business insurance policy was purchased for $1,200 was paid and charged to Prepaid Insurance. - During the year, a depreciable asset that cost $10,700 and a carrying value of $5,300 was sold for $6,000. The disposal of the asset was recorded correctly. - Warehouse quarterly rent received in advance is $14,000. During the year, equipment was rented to another company at an annual rent of 6,000 . The quarterly rent payments were credited to Rent Revenue upon receipt; the annual equipment rental was credited to Unearned Rent. - Salaries are paid biweekly. All salaries payments during the year were debited to Salaries Expense