What do you mean by Qts? I wasnt given any other material.

TECHNICAL PROBLEM #1 Technical Problem #1 relates to chapter 3 - The Accounting Information System. It requires you to complete a problem involving three separate steps in the accounting cycle - preparing an unadjusted trial balance; preparing adjusting entries, and preparing an adjusted trial balance. This assignment is worth 15 points. - Problem - McAdoo & Co. is an engineering firm with offices in several cities in the Carolinas. McAdoo's fiscal year-end is December 31, and it prepares financial statements just once a year, at year-end. For bookkeeping purposes, McAdoo has adopted a policy to record payments and collections in advance into asset and liability accounts, respectively. The company's unadjusted trial balance at December 31, 2020 is shown below. All accounts have normal-side balances. . Accounts Payable Accounts Receivable Accumulated Depreciation - Buildings Accumulated Depreciation - Equipment Advertising Expense Allowance for Doubtful Accounts Buildings Cash Common Stock (Sl par) Dividends Equipment Insurance Expense Interest Expense Land Notes Payable Phone and Internet Expense Retained Earnings Salaries and Wages Expense Service Revenue Supplies Unearned Rent Revenue Utilities Expense $ 356,210 781,940 223.125 249,075 192,530 13,748 1,185,000 952,618 183,000 242,750 701,200 376,220 39,870 317,510 729,000 166,390 872,735 3,916,185 6,582,630 129,785 63,880 271,405 Additional information available at year-end is as follows: 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