Action Quest Games adjusts its accounts annually. Assume that any prepaid expenses are initially recorded in asset accounts. Assume that any revenue collected in advance is initially recorded as liabilities. The following information is available for the year ended December 31, 2021: 1. 2. 3. A $3,600 one-year insurance policy was purchased on April 1, 2021. Paid $5,500 on August 31, 2021, for five months' rent in advance. On September 27, 2021, received $3,500 cash from a corporation that sponsors games for the most improved students attending a nearby school. The $3,500 was for 10 games, worth $350 each, that are played on the first Friday of each month starting in October. (Use the Unearned Revenue account.) Signed a contract for cleaning services starting December 1, 2021. for $500 per month. Paid for the first three months on November 30, 2021. (Use Office Expense for the adjusting entry.) On December 15, 2021, sold $1,030 of gift certificates to a local game club. On December 31, 2021, determined that $540 of these gift certificates had not yet been redeemed. (Use the account Unearned Revenue.) 4. 5. (a) For each transaction, prepare the journal entry to record the initial transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Debit Credi No. Date Account Titles and Explanation 1 2. > List of Accounts