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Scenario 2 You are an accountant for the Mckright Consulting Group (MCG). which consults businesses on how to implement controls to prevent fraud and theft.

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Scenario 2 You are an accountant for the Mckright Consulting Group (MCG). which consults businesses on how to implement controls to prevent fraud and theft. in its first quarter of operations, MCG had the following transactions: 1. January 30: Established the business by acquiring $100,000 cash from the issue of common stock. 2. January 31: Paid rent for office space for two years, $48,000 cash. 3. Februory 1: Received $24,000 cash in advance for services to be provided every month over the next year. 4. February 8: Purchased $4,000 worth of supplies on account. 1 5. Februery 21: Paid $2,500 of the accounts payable from February 8 . 6. Februory 28: Provided and bilied a customer for $19,000 worth of services rendered on account. 7. March 2. Completed a job and received $12,000 cash for services rendered. 8. March 5: Paid employee salaries of $35,000cash. 9. March 12: Received $9,500 cash for the services rendered on February 28. 10. Mareh 16: Provided and billed a customer for $45,000 worth of services rendered on account. 11. March 22: Paid a dividend of $5,000 cash to the stockholders. At the end of the quarter, MCG completed the following transactions to acknowfedge deferred and accrued items: 1. March 31: Adjusted records to recognize the services provided for the contract established on February 1. Assume that the amount of service is divided equally across 12 months. 2. March 31: Recorded $15,000 of accrued salaries as of March 31 . 3. March 31: Recorded the rent expense for the quarter. (Referring to the transaction on January 31) 4. March 31: Physically counted supplies; $500 worth was on hand at the end of the period. Required As an accountant for MCG, please complete the following in the order listed: - Journalize the January 1 through March 22 transactions. - Journalize the March 31 transactions. These are adjusting entries. - Post all journal entries to the Traccounts and calculate the balance of each. - Prepare an adjusted trial balance. Note: we are bypassing the preparation of the unadjusted trail balance, which is normally drafted before recording the adjusting entries. This is to save you time. - Journalize the closing of the temporary accounts to Retained Earnings. These are the closing entries needed to "reset" some accounts for the next accounting cycle. - Post the closing entries to the T-accounts. Be sure to update any T-account balance that is affected by the closing process. - Prepare a post-closing trial balance for Quarter 1

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