Accounting multiple part question.

PART A (24 Points) ;In the journal for McBride Company provided below, record the appropriate adjusting entries as of December 31. ; Please note that McBride Company has not prepared any adjusting entries for the current year prior to December 31. ;

;a. ; The Store Supplies account showed a beginning balance of $300 and purchases of $700. ; Unused store supplies at the end of the year were counted and totaled $200.

b. ; On December 1, the company paid three months rent in advance, debiting Prepaid Rent for $2,100.

;c. ; Equipment purchased January 1 of the current year for $16,000 was estimated to have a useful life of 4 years with no salvage value.

;d. ; Wages are paid each Friday for a 5-day week. ; The salary is set at a fixed rate of $1,000 per day, and the accounting period ended on Tuesday.

;e. ; On November 1, the company accepted a $15,000, 12%, 6-month Note Receivable. ; An adjusting entry should be made to accrue the interest on this note.

;f. ; The balance in Unearned Commissions Revenue at December 31, is $1,800. ; This represents a customer deposit for which one-half has been earned as of December 31.
;
;

McBRIDE COMPANY GENERAL JOURNAL

;

PART B (30 Points)

;Below is an Adjusted Trial Balance for Brown Company for the year ended December 31. ; In the space provided on the next two pages:

Required: ;a. ; Record the appropriate closing entries in the general journal below. ;b. ; Prepare a Post-Closing Trial Balance on the form provided below.
;
;
;

BROWN COMPANY GENERAL JOURNAL

;
;

PART C (16 Points)

ESSAY QUESTIONS

Required: ; For EACH of the two questions below, write at least one full paragraph in response to the question asked. ; Be sure each of your paragraphs had a topic sentence. ; Please pay attention to your spelling, grammar and punctuation. Do not plagiarize from your textbook or any other source. ; Be sure your answers are in your own words.

1. ; Journalizing and posting closing entries are required steps in the accounting cycle. ; Discuss why it is necessary to close the books at the end of an accounting period. ; If closing entries were not made, how would the preparation of financial statements be affected?

2. ; The long-term liability section of Omega Company’s Balance Sheet includes the following accounts:

Omega Company is an established company and does not experience any financial difficulties or have any cash flow problems. ; Identify at least two items in the long-term liability section that are questionable and explain where the placement on the balance sheet would be more appropriate and why.