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Cheyenne 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
Cheyenne 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 $2,052 cash. 2. Paid $7,410 on August 31 for 5 months' rent in advance. 3. On September 4, received $4,104 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 $1,140 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 $1,710 in advance from a gaming club. Determined that on December 31, $550 of these games had not yet been played. 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.) 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.) (Round answers to O decimal places, e.g. 5,275. 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, 2022 2. Dec. 31, 2022 3. Dec. 31, 2022 4. Dec. 31, 2022 5. Dec. 31, 2022 Post the journal entries in parts (a) and (b) to T-accounts and determine the final balance in each account. (Note: Posting to the Cash account is not required.) (Round answers to 0 decimal places, e.g. 5,275. Post entries in the order displayed in the problem statement.) Prepaid Insurance > > Prepaid Rent V Unearned Service Revenue Prepaid Cleaning Insurance Expense Rent Expense Service Revenue > Prepaid Rent V Unearned Service Revenue Prepaid Cleaning Insurance Expense Rent Expense Service Revenue
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