CAGLARE PRINTER VERSION BACK 1. Exercise 3-15 a-c (Part Level Submission) Blue Spruce Corp. adjusts its accounts annually. The following information is available for the year ended December 31, 2020. Purchased a 1-year insurance policy on June 1 for $1,440 cash. 2. Paid $6,450 on August 31 for 5 months' rent in advance. On September 4, received $3,690 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 $1,450 in advance from a gaming club, Determined that on December 31, 8350 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. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Deb Credit June 1, 2020 Prepaid Insurance 1.440 Cash 2 Aug 31, 2020 Prepaid Rent 6,450 6,450 3 (Sept 4, 2020 Cash 3.690 Umedarvice Revenue 3.690 CAL Unearned Service Revenue 3,690 4. Nov. 30, 2020 Prepaid Cleaning 2,000 Cash 2,000 5. Dec. 5, 2020 Cash 1,450 Unearned Service Revenue 1,450 SHOW LIST OF ACCOUNTS SHOW ANSWER LINK TO TEXT Attempts: 2 (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 for item 4.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. Dec 31, 2020 Insurance Expense 840 Prepaid Insurance 840 For each of the above transactions, prepare the adjusting journal entry that is required on Decemb for item 4.) (Credit account titles are automatically indented when the amount is entered No. Date Account Titles and Explanation Debit Credit 1. Dec. 31, 2020 Insurance Expense 840 7 Prepaid Insurance 840 2. Dec 31, 2020 Rent Expense 5160 Prepaid Rent 5160 3. Dec. 31, 2020 Unearned Service Revenue 1640 Service Revenue 1640 4. Dec 31, 2020 Maintenance and Repairs Expense 1000 Prepaid Cleaning 1000 5. Dec. 31, 2020 Unearned Service Revenue 1100 Service Revenue 1100 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT RACK Attempts: 1 of 2 used 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 displayed in the problem statement.) Prepaid Insurance >> Prepaid Rent Uneared Service Revenue Prepaid Cleaning Insurance Expense Prepaid Cleaning 101 Insurance Expense 101 0 Rent Expense Service Revenue V Maintenance and Repairs Expense CALCULATOR PINTEREST BACK NEXT 5 Exercise 3-15 a-c (Part Level Submission) Blue Spruce Corp. adjusts its accounts annually. The following information is available for the year ended December 31, 2020. Purchased a 1-year insurance policy on June 1 for $1,440 cash. 2 Paid $6.450 on August 31 for 5 months' rent in advance. 3. On September 4, received $3,690 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 $1,000 per month. Paid for the first 2 months on November 30. (Mint 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, $350 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. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. June 1. 2020 Prepaid Insurance 1,440 Cash 1,440 2. Aug 31, 2020 Prepaid Rent 6,450 Cash 6,450 3. Sept. 4. 2020 3.690 Unearned Service Revenue 3.690
