Queen & Ace Games (Q&A Games) runs its business from January 1 to December 31 (year-end). On January 1, 2023, Q&A Games pays $12,000 for a one-year insurance policy that covers January 1, 2023 to December 31, 2023. Record the journal entries for the following:
1. Record the initial entry on January 1, 2023, when Q&A Games pays for the insurance policy.
2. The following are independent situations. Assume Q&A Games reports using the following accounting periods.
1. Monthly (1 month)—Assume Q&A Games reports on a monthly basis. Record the adjusting journal entry on January 30, 2023.
2. Quarterly (3 months)—Assume Q&A Games reports on a quarterly basis. Record the adjusting journal entry on March 30, 2023.
3. Semi-annual (6 months)—Assume Q&A Games reports on a semi-annual basis. Record the adjusting journal entry on June 30, 2023.
4. Annual (12 months)—Assume Q&A Games reports on an annual basis. Record the adjusting journal entry on December 31, 2023.