Accounting Technical Problem, please help with part B and C!!

Unadjusted Trial Balance Debit Credit Cash $952,618 Supplies $129,785 Accounts receivable $781,940 Allowance for Doubtful Acounts $13,748 Land $317,510 Buildings $1,185,000 Accumulated Depreciation- Buildings $223,125 Equipments $701,200 Accumulated Depreciation- Equipment $249,075 Accounts payable $356,210 Notes payable $729,000 Unearned Rent revenue $63,880 Common stock $183,000 Dividends $242,750 Retained Earnings $872,735 Service Revenue $6,582,630 Salaries and wages expense $3,916,185 Advertising expense $192,530 Insurance expense $376,220 Interest expense $39,870 Phone and Internet expense $166,390 Utilities expense $271,405 Totals $9,273,403 $9,273,403 1. 2. 3. 4. 5. In the first week of January 2021, McAdoo received bills for December 2020 utilities totaling $28,985. The company paid all of these bills in late January 2021. On June 1, 2020, McAdoo purchased a 24-month insurance policy for $306,720 and paid the full cost of the policy in advance. The policy provides coverage through May 31, 2022. Note - Contrary to the company's normal practice, McAdoo's bookkeeper recorded the prepayment into the Insurance Expense account. Give the adjusting entry needed when a company uses the expense approach to record a payment in advance. McAdoo operates 5 days a week, Mondays through Fridays. Employees are paid each Monday, for hours worked through the previous Friday. On Monday, December 28, 2020, the last payday in 2020, McAdoo paid its employees for hours worked during the week of December 21-25. (Note that Christmas Day is a paid holiday for all employees.) The employees then worked their regular schedule through the end of the year. McAdoo's payroll averages $14,215 per day. McAdoo sometimes leases unused space in its buildings to other businesses. On November 1, 2020, a new tenant signed a 1-year lease and paid the first 8 months' rent of $63,880 in advance. The lease began on that date and runs through October 31, 2021. McAdoo started the year 2020 with a Supplies account balance of $51,320. During the year, McAdoo made several purchases of supplies totaling $78,465. A physical count at year-end 2020 revealed the company had a total of $59,715 of supplies on hand. The Notes Payable balance relates to a bank loan taken in 2019 that is payable in full on September 30, 2023. The loan agreement specifies that McAdoo pay interest annually on September 30 at the rate of 5.20% per year. McAdoo's bookkeeper made the proper entry for the first interest payment, on September 30, 2020. (Hint - Think about the entry McAdoo made on the first interest payment date.) McAdoo performed $291,670 of legal services for several clients in December 2020 that it has not yet billed, recorded or collected. McAdoo estimates that 8.55% of the 2020 year-end accounts receivable balance will not be collected McAdoo purchased its buildings in 2011 and its equipment in 2015. McAdoo depreciates its fixed assets according to the straight-line method. For the buildings, it uses estimates of 36 years for the useful life and $240,000 for the salvage value. For the equipment, it uses estimates of 12 years for the useful life and $37,000 for the salvage value. The company's income tax rate for the year is 25%. (Hint - The income tax rate is applied to the company's income after all revenues and expenses have been considered except for the income tax charge.) 6. 7. 8. 9. 10. - Instructions Complete the following three tasks relating to McAdoo & Co.'s accounting process at year-end 2020: (b) Prepare an unadjusted trial balance as of December 31, 2020. List the accounts in an appropriate trial balance order. Prepare the adjusting journal entries needed at December 31, 2020. Prepare an adjusted trial balance as of December 31, 2020. List the accounts in an appropriate trial balance order. Please observe the following checklist of instructions as you complete this assignment: Prepare your journal entries and trial balances using Excel. Give careful attention to your formatting of information. Formatting includes effective presentation of information, correct spelling and capitalization, and proper use of dollar signs, commas, and underscoring. Refer to examples in the textbook for guidance. Round all dollar amounts you present in your journal entries and trial balances to the nearest dollar. OO