Solve this exercise

James and James, a PR services firm, adjusts its accounts at the end of each month. The following information is avalable for the year ending December 31. 1. A bark loan had been obtained on Desember 1. Accrued interest on the loan at December 31 amounts to $1,500. No interest expense has yet been recorded. 2. Depreciation of the firm's office builing is based on an estimated life of 30 years. The builing was purchased four years ago for $450,000. 3. Accrued, but unbilled, revenue during December amounts to $75,000. 4. On March 1, the firm paid $2,400 to renew a 12 -month insuranca policy. The entire amount was recorded as Prepaid insurance. 5. The firm received $15,000 from King Biscuit Company in advance of developing a six-month marketing campaign. The entire amount was initially recorded as Uneamed Revenue. At December 31,$9,000 had actualy been eamed by the fim. 6. The company/s policy is to pay its employees every Friday. Since December 31 fell on a Wednesday, there was an accrued liability for salaries amounting to $1,900. a. Record the necessary adjusting joumal entries on December 31 b. If services have been rendered to customers during the current accounting period but no revenue has been recorded and no bill has been sent to the customers, why is an adjusting entry needed? What types of accoun's should be debited and credited by this entry? c. Briefly explain the concept of materiality. If an item is not material, how is the item treated for financial reporting purposes? Would a $1,000 expenditure be considered material to all businesses? Explain