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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 $ 1,200 cash. | |
2. | Paid $ 5,000 on August 31 for 5 months rent in advance. | |
3. | On September 4, received $ 4,140 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. | Signed a contract for cleaning services starting December 1 for $ 950 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.) | |
5. | On December 5, received $ 1,450 in advance from a gaming club. Determined that on December 31, $ 550 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 0 decimal places, e.g. 5,275. Post entries in the order displayed in the problem statement.)
Prepaid insurance
prepaid rent
unearned service revenue
prepaid cleaning
insurance expense
rent expense
service revenue
maintenance and repairs expense
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