An entity had the following opening and closing inventory balances during the current year: 1/1 12/31 Finished goods US $ 90,000 US $260,000 Direct materials 105,000 130,000 Work-in-progress 220,000 175,000 The following transactions and events occurred during the current year: US $300,000 of direct materials were purchased. US $600,000 of direct labor costs were incurred. US $750,000 of production overhead costs were incurred. The cost of goods sold for the current year ended December 31 would be:

The ledger of laurie rental agency on march 31 of the current year includes the following selected accounts before adjusting entries have been prepared. debit credit prepaid insurance $ 5,400 supplies $ 4,500 equipment 40,000 accumulated depreciation—equipment $12,600 notes payable 25,000 unearned rent revenue 11,100 rent revenue 90,000 interest expense –0– salaries and wages expense 20,000 an analysis of the accounts shows the following. 1. the equipment depreciates $600 per month. 2. two-thirds of the unearned rent revenue was earned during the quarter. 3. the note payable is dated january 1 and bears 12% interest. 4. supplies on hand total $800. 5. the insurance policy is a two-year policy dated january 1. instructions: a. prepare the adjusting entries at march 31, assuming that adjusting entries are made quarterly. additional accounts are: depreciation expense, insurance expense, interest payable, and supplies expense. b. compute the ending balances for prepaid insurance, unearned rent revenue, and rent revenue, and indicate in which financial statement those items will be reported.