Chapter 4, Problem 6E

1.

To determine

Record the adjusting entry for insurance according to the three-step process.

2.

To determine

Record the adjusting entry for use of construction equipment, according to the three-step process.

3.

To determine

Indicate the amount of Advertising Expense and Depreciation Expense that should be reported on the current year’s income statement.

4.

To determine

Compute the amount of Prepaid Advertising and Construction Equipment that should be reported on the current year’s balance sheet.