M$4-5$ and M$4-6($Algo$)$

$[$The following information applies to the questions displayed below.$]$

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.$

M$4-5($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 $31.$ If a transaction affects a temporary account, include the account name under "Temporary

Accounts" and the financial effect under $"$NI$."$ Do not enter an amount under "Stockholders' Equity" for these transactions; their impact

on stockholders' equity will occur later when the temporary accounts are closed at year$-$end. Do not enter No Effect $($NE$)$ or zero for

any cells without an effect for each transaction despite what may be shown in textbook demonstration cases as these cells should be

left blank.

Note: Enter any decreases to Assets, Liabilities, Stockholders' Equity, or Net Income with a minus sign.