Brothers Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2021: 1. Purchased a one-year
Brothers Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2021: 1. Purchased a one-year insurance policy on June 1 for $2,100 cash. 2. Paid $6,150 on August 31 for five months' rent in advance. 3. 4. 5. On September 4, received $3,330 cash in advance from a corporation to sponsor a game each month for a total of nine months for the most improved students at a local school. Signed a contract for cleaning services starting December 1, for $910 per month. Paid for the first two months on November 30. (Hint: Use the account Prepaid Cleaning to record this prepayment.) On December 5, received $1,550 in advance from a gaming club, Determined that on December 31, $510 of these games had not yet been played. For each of the above transactions, prepare the journal entries to record the initial transaction. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation June 1 Prepaid Insurance Cash Aug. 31 Prepaid Rent Cash Sept. 4 Cash Debit Credit 2100 6150 3330 Service Revenue Nov 30 Prepaid Cleaning 18201 Cash Dec. 5 Cash Service Revenue 1550 2100 6150 3330 1820 1550
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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