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Blossom 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
Blossom 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 $2,196 cash. 2. Paid $7,930 on August 31 for 5 months' rent in advance. 3. On September 4, received $4,392 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 $1,220 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 $1,830 in advance from a gaming club. Determined that on December 31, $590 of these games had not yet been played. No. Date Account Titles and Explanation Debit Credit 1. Dec. 31, 2022 Insurance Expense 1281 Prepaid Insurance 1281 2. Dec. 31, 2022 Rent Expense 6344 Prepaid Rent 6344 3. Dec. 31, 2022 Unearned Service Revenue 1952 Service Revenue 1952 4. Dec. 31, 2022 Maintenance and Repairs Expense Prepaid Cleaning Prepaid Insurance June 1 2196 Dec. 31 Adj. Dec. 31 Bal. Prepaid Rent Aug. 31 7930 Dec. 31 Adj. 6344 Dec. 31 Bal. Unearned Service Revenue Dec. 31 Adj. 1952 Sept. 4 4392 Dec. 31 Adj. Dec. 5 1240 Dec. 31 Bal. Prepaid Cleaning Nov. 30 1200 Dec. 31 Adj. 1200 Dec. 31 Bal. 1200 Dec. 31 Adi. 1200 Insurance Expense Dec. 31 Adj. 1281 Rent Expense Dec. 31 Adj. 6344 Service Revenue Dec. 31 Adj. 1952 Dec. 31 Adj. Dec. 31 Bal. Maintenance and Repairs Expense Dec. 31 Adj. 1200
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