Question 4. SHOW YOUR LABELLED WORK 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. Prepaid Insurance Balance beginning of year Balance end of year $4,300 3,600 During the year, an additional business insurance policy was purchased for $1,200 was paid and charged to Prepaid Insurance. 2. Accumulated Depreciation: Balance beginning of year Balance end of year $103,400 106,100 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. 3. Unearned Rent: Balance beginning of year Balance end of year $ 8,000 12,000 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. More on next page