Gauge construction company is making adjusting entries for the year ended march 31 of the current year. in developinginformation for the adjusting entries, the accountant learned the following: a the company paid $1,500 on january 1 of the current year to have advertisements placed in the local monthlyneighborhood papen the ads were to be run from january through june the bookkeeper debited the full amount toprepaid advertising on january 1.b, at march 31 ofthe current year, the following data relating to construction equipment were obtained from the recordsand supporting documents, construction equipment (a out! ) $ winn (til-flu much 31 ! plinl'yelr) i321")required: 1. using the process illustrated in the chapter, record the adjusting entry for advertisements at march 31 of the currentyear,2 using the process illustrated in the chapter, record the adjusting entry for the use of construction equipment during thecurrent year,3, what amount should be reported on the current year’s income statement for advertising expense? for depreciationexpense? 4. what amount should be reported on the current year’s balance sheet for prepaid advertising? for constructionequipment (at net book value)?