Blue Spruce Games Inc. adjusts its accounts annually. The following information is available for the year ended December $31,2025.$

Purchased a $1-$year insurance policy on June $1$ for $$2,400$ cash.

Paid $$7,540$ on August $31$ for $5$ months' rent in advance.

On September $4,$ received $$4,230$ 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 $$1,160$ per month. Paid for the first $2$ months on November

$($Hint: Use the account Prepaid Cleaning to record prepayments.$)$

On December $5,$ received $$1,740$ in advance from a gaming club. Determined that on December $31,$$$550$ of these games had

not yet been played.

$($a$)$ Your answer is correct.

For each of the above transactions, prepare the journal entry to record the initial transaction. $($List all debit entries before credit

entries. 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.$)$

Debit

Credi

Prepaid Rent

Cash

Cash

Unearned Service Revenue

Prepaid Cleaning

$$1740$

$$1740$

Unearned Service Revenue $($b$)$

Your answer is 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 $4.)($List all debit entries before credit entries. 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.$)$

No$.$ Date Account Titles and Explanation

Debit

Credit

$\backslash$table$[[],[$Dec$.],[31,],[2025]]($c$)$

Your answer is partially correct.

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.$)($Post entries in the order presented in the previous parts.$)$

Maintenance and Repairs Expense