The following are transactions for the Sky Blue Corporation: a. Collected $4,050 rent for the period October 1 to December 31, which was credited to Deferred Revenue on October 1. b. Paid $2,520 for a two-year insurance premium on October 1 and debited Prepaid Insurance for that amount. c. Used a machine purchased on October 1 for $54,600. The company estimates annual depreciation of $5,460. M4-5 (Algo) Determine Accounting Equation Effects of Deferral Adjustments [LO 4-2] Required: For each of the above transactions for the Sky Blue Corporation, give the accounting equation effects of the adjustments required at the end of the month on October 31. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Transaction Assets a. b. Prepaid Insurance C Accumulated Depreciation Liabilities Deferred Revenue (105) (455) Stockholders' E 1,327 Rent Revenue insurance Expense Depreciation Expense The following are transactions for the Sky Blue Corporation: a. Collected $4,050 rent for the period October 1 to December 31, which was credited to Deferred Revenue on October 1. b. Paid $2,520 for a two-year insurance premium on October 1 and debited Prepaid Insurance for that amount. c. Used a machine purchased on October 1 for $54,600. The company estimates annual depreciation of $5,460. M4-6 (Algo) Recording Adjusting Journal Entries [LO 4-2] Required: For each of the above transactions for the Sky Blue Corporation, prepare the adjusting journal entries required on October 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list 1 Record the rent revenue earned during October. 2 Record the insurance expense for October 3 Record the depreciation for the month of October.