Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2017. 1. Purchased a 1-year insurance
Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2017. 1. Purchased a 1-year insurance policy on June 1 for $2,040 cash. 2. Paid $5,900 on August 31 for 5 months' rent in advance. 3. On September 4, received $2,880 cash in advance from a corporation to sponsor a game each month for a total of 9 months for the most improved students at a local school. 4. 5. Signed a contract for cleaning services starting December 1 for $800 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.) On December 5, received $1,550 in advance from a gaming club. Determined that on December 31, $600 of these games had not yet been played. Post the journal entries in parts (a) and (b) to T-accounts and determine the final balance in each account balance. (Note: Posting to the Cash account is not required.) (Round answers to O decimal places, e.g. 5,275. Post entries in the order displayed in the problem statement.) June 1 Dec. 31 Bal. Aug. 31 Dec. 31 Bal. Dec. 31 Adj. Dec. 31 Adj. Nov. 30 Dec. 31 Bal. Prepaid Insurance Dec. 31 Adj. Prepaid Rent Dec. 31 Adj. Unearned Service Revenue Sept. 4 Dec. 5 Dec. 31 Bal. Prepaid Cleaning Dec. 31 Adj. Dec. 31 Adj. Insurance Expense Dec. 31 Adj. Dec. 31 Adj. Rent Expense Service Revenue Dec. 31 Adj. Dec. 31 Adj. Dec. 31 Bal. Maintenance and Repairs Expense
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started