Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2022. 1. Purchased a 1-year insurance policy on June 1 for $1.800 cash. 2 Paid $6,500 on August 31 for 5 months' rent in advance. 3. On September 4, received $3,600 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. Signed a contract for cleaning services starting December 1 for $1.000 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 $1,500 in advance from a gaming club. Determined that on December 31, $475 of these games had not yet been played. Your answer is partially correct. For each of the above transactions, prepare the journal entry to record the initial transaction. (If no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit ne 1, 2022 O Prepaid Insurance Cash g. 31, 2022 Prepaid Rent Cash pt. 4,2022 O w. 30, 2022 0 c.5.2022 D Cash Unearned Service Revenue Prepaid Cleaning Cash Cash Textbook and Media 1800 6500 3600 2100 1800 6500 3600 2100 Your answer is partially correct. For each of the above transactions, prepare the adjusting journal entry that is required on December 31. (Hint: Use the account Service Revenue for item 3 and Maintenance and Repairs Expense for item 43 (Round answers to 0 decimal places, eg. 5,275, If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit Dec. 1. 31, Imrance Expense 2022 Prepold Insurance Dec Rent Expens Prepaid Rent Unearned Service Revenue Service Revenue Maintenance and Repairs Expense Prepaid Cleaning Unearned Service Revenue Service Revenue Your answer is partially correct. Post the journal entries in parts la) 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 0 0 =R 0 2 3. 4 5. 31, 2022 Dec. 31, 2022 Dec. 31, 2022 Dec 31, 2022 eTextbook and Media List of Accounts Prepaid Rent Unearned Service Revenue Dec. 31 Ad Dec. 31 Ad 0 Prepaid Cleaning Nov 30 Dec. 31 Adj. O Insurance Expense Aug 31 Rent Expense Aug 31 0 Service Revenue Maintenance and Repairs Expense Dec 31 Adj 1500 Dec. 31 Adj. O 0 0 Aug 31 Aug 31 0 O O 6500
