uestion 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. - 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. 3. - 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