As a staff auditor, you come across the following unpaid items while performing the search for unrecorded liabilities during the course of the audit of ABC Company for the year ended 12/31/16: 1.Invoice of $45,000 dated 12/1/16 from cover Insurance Company for 1 year policy covering the period December 1, 2016-November 30, 2017. 2. Invoice of $6, 500 dated 12/31/16 from Ace Janitors, Inc. for services to be performed in January 2017. 3. Invoice of $12,000 dated 1/13/17from Butterfly computers, for desktops received 12/29/16 4. Invoice of $5, 500 dated 1/17/17 from Grinds Catering, for catering related to party event on 1/2/17. 5. Invoice of $18,000 dated 1/11/17 from SD Electric, for electricity over the period 12/11/16-1/10/17. Per discussion with the Controller, all accounting policies are consistent with prior years. Materiality related to this testwork is $5,000. a. For each item above, assess whether it requires accrual or not, and give an explanation for your assessment. b. For those items requiring accrual (if any), propose an adjusting journal entry