Question

Determine Accounting Equation Effects of Adjustments

For each of the following transactions for the Sky blue Corporation, give the accounting equation effects of the adjustments required at the end of the month onDecember 31, 2009:
1. Collected $1,200 rent for the period December 1, 2009, to February 28, 2010, wich was credited to Unearned Rent Revenue on December 1, 2009.
2. Paid $ 2,400 for a two-year insurance premium on December 1, 2009; debited Prepaid Insurance for that amount.
3. Used a machine purchased on December 1, 2009, for $48,000. The company estimates annual depreciation of $4,800.

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