1. Adusting entries. The trial balance of Swift Company shows the following balances for selected accounts on November 30, 2006: Prepaid Insurance $ 5,000 Unearned Revenue $ 1,800 Equipment 40,000 Notes Payable 24,000 Accumulated Depreciation 8,800 Interest Payable 400 Instructions Using the additional information given below, prepare the appropriate monthly adjusting entries at November 30. Show computations. A. Revenue earned for services rendered to customers, but not yet billed, totaled $4,000 on November 30. B. The note payable is a 7%, 1-year note issued October 1, 2006. C. The equipment was purchased on January 2, 2004, for $50,000. It has an estimated life of 4 years and an estimated salvage value of $2,000. Swift uses the straight-line depreciation method. D. An insurance policy was acquired on June 30, 2006; the premium paid for 2 years was $12,000. E. Smart received $1,800 of revenue in advance from a customer on November 1, 2005. Two-thirds of this amount was earned by November 30. Q2.Inventory Botter Company had a beginning inventory of 200 units at a cost of $13 per unit on August 1. During the month, the following purchases and sales were made. Purchases Sales August 4 250 units at $14 August 7 150 units August 15 350 units at $15 August 11 100 units August 28 200 units at $16 August 17 300 units August 24 200 units Botter uses a periodic inventory system. Instructions Determine ending inventory and cost of goods sold under (a) FIFO, and (b) LIFO. (a) FIFO: Ending inventory = $_____________; cost of goods sold = $____________. (b) LIFO: Ending inventory = $_____________; cost of goods sold = $____________