PART A (24 Points) In the journal for McBride Companyprovided below, record the appropriate adjusting entries as of December31. Please note that McBride Company has not prepared anyadjusting entries for the current year prior to December 31. a. The Store Suppliesaccount showed a beginning balance of $300 and purchases of $700. Unusedstore 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 January1 of the current year for $16,000 was estimated to have a useful lifeof 4 years with no salvage value. d. Wages are paid eachFriday for a 5-day week. The salary is set at a fixed rate of $1,000 perday, and the accounting period ended on Tuesday. e. On November 1,the company accepted a $15,000, 12%, 6-month NoteReceivable. An adjustingentry should be made to accrue the interest on this note. f. The balance inUnearned Commissions Revenue at December 31, is $1,800. This represents acustomer deposit for which one-half has been earned as of December 31. McBRIDECOMPANY GENERAL JOURNALDATEACCOUNTTITLESDRCR PART B (30 Points) Below is an Adjusted TrialBalance for Brown Company for the year ended December 31. In the spaceprovided on the next two pages:Required: a. Record theappropriate closing entries in the general journal below. b. Prepare aPost-Closing Trial Balance on the form provided below. BROWNCOMPANYAdjustedTrial BalanceDecember31, 20xxDEBITCREDITCash$ 2,150Account Receivable2,600Office Supplies 2,500Office Equipment12,000 Accumulated Depreciation, OfficeEquipment$ 4,500Accounts Payable800C.R. Brown, Capital 10,200C.R. Brown, Drawing500Commissions Revenue8,400Interest Revenue800Depreciation Expense 400Salary Expense4,400Utility Expense150 TOTALS$24,700$24,700BROWNCOMPANY GENERAL JOURNALDATEACCOUNTTITLEDRCR BROWNCOMPANYPost-ClosingTrial BalanceDecember31, 20xxDEBITCREDIT PART C (16 Points)ESSAYQUESTIONSRequired: For EACH of the twoquestions below, write at least one full paragraph in response to the questionasked. Be sure each of your paragraphs had a topic sentence. Pleasepay attention to your spelling, grammar and punctuation. Do not plagiarize fromyour textbook or any other source. Be sure your answers are in your ownwords.1. Journalizing and posting closing entries are required stepsin the accounting cycle. Discuss why it is necessary to close the booksat the end of an accounting period. If closing entries were not made, howwould the preparation of financial statements be affected?2. The long-term liabilitysection of Omega Company’s Balance Sheet includes the following accounts:Accounts Payable$75,000Mortgage Payable250,000Notes Payable100,000Accumulated Depreciation125,000 Total long-term liabilities$550,000Omega Company is an established company and does not experience any financialdifficulties or have any cash flow problems. Identify at least twoitems in the long-term liability section that are questionable and explainwhere the placement on the balance sheet would be more appropriate and why.