Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Carla Vista Quest Games adjusts its accounts annually. Assume that any prepaid expenses are initially recorded in asset accounts. Assume that any revenue collected in
Carla Vista Quest Games adjusts its accounts annually. Assume that any prepaid expenses are initially recorded in asset accounts. Assume that any revenue collected in advance is initially recorded as liabilities. The following information is available for the year ended December : A $ oneyear insurance policy was purchased on April Paid $ on August for five months' rent in advance. On September received $ cash from a corporation that sponsors games for the most improved students attending a nearby school. The $ was for games, worth $ each, that are played on the first Friday of each month starting in October. Use the Unearned Revenue for the initial entry and Service Revenue for the adjusting entry. Signed a contract for cleaning services starting December for $ per month. Paid for the first three months on November Use Prepaid Expenses for the initial entry and Office Expense for the adjusting entry. On December sold $ of gift certificates to a local gaming club. On December determined that $ of these gift certificates had not yet been redeemed. Use the account Unearned Revenue.For each transaction, prepare the journal entry to record the initial transaction. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts. List all debit entries before credit entries. No Date Account Titles and Explanation Debit Credit
Carla Vista Quest Games adjusts its accounts annually. Assume that any prepaid expenses are initially recorded in asset accounts.
Assume that any revenue collected in advance is initially recorded as liabilities. The following information is available for the year
ended December :
A $ oneyear insurance policy was purchased on April
Paid $ on August for five months' rent in advance.
On September received $ cash from a corporation that sponsors games for the most improved students
attending a nearby school. The $ was for games, worth $ each, that are played on the first Friday of each month
starting in October. Use the Unearned Revenue for the initial entry and Service Revenue for the adjusting entry.
Signed a contract for cleaning services starting December for $ per month. Paid for the first three months on
November Use Prepaid Expenses for the initial entry and Office Expense for the adjusting entry.
On December sold $ of gift certificates to a local gaming club. On December determined that $ of
these gift certificates had not yet been redeemed. Use the account Unearned Revenue.For each transaction, prepare the journal entry to record the initial transaction. Credit account titles are automatically indented
when amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter for the amounts.
List all debit entries before credit entries.
No
Date
Account Titles and Explanation
Debit
Credit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
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