1. The Carol-Ann Corporation's February 28 unadjusted trial balance included many accounts, including the following. Account Name Debits Credits Cash $8,000 Supplies 5,000 Prepaid Rent 0 Prepaid Insurance 4,800 Accounts Payable $12,000 Fees Revenue 79,000 Supplies Expense 0 Rent Expense 8,000 Insurance Expense 800 During February, the Carol-Ann Corporation had paid $8,000 to use office space for four months, beginning on February 1. Determine the dollar amount of prepaid rent the Carol-Ann Corporation should report on its February 28 balance sheet.

2. Given the information in the table below, what is the companys gross profit? Accounts receivable $280,000 Cost of goods sold $180,000 Ending inventory $230,000 Sales returns and allowances $10,000 Sales revenue $350,000