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Exercise 4-16 Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2017. 1. Purchased a

Exercise 4-16

Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2017.

1. Purchased a 1-year insurance policy on June 1 for $2,640 cash.
2. Paid $6,850 on August 31 for 5 months rent in advance.
3. On September 4, received $2,700 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 $1,100 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 $1,250 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, record the adjustment that is required on December 31 in the tabular summary from part (a). (Hint: Use the account Service Revenue for item 3 and Repairs and Maintenance Expense for item 4.) (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
Assets = Liabilities + Stockholders Equity
2017 Cash + Prepd. Insur. + Prepd. Rent + Prepd. Clean. Unearned Serv. Rev. Com. Stock + Retained Earnings
= + Rev. - Exp. - Div
Dec. 31

Repairs & Maintenance ExpenseService RevenueRent ExpenseInsurance Expense

Dec. 31

Rent ExpenseInsurance ExpenseRepairs & Maintenance ExpenseService Revenue

Dec. 31

Rent ExpenseService RevenueInsurance ExpenseRepairs & Maintenance Expense

Dec. 31

Rent ExpenseService RevenueInsurance ExpenseRepairs & Maintenance Expense

Dec. 31

Service RevenueInsurance ExpenseRent ExpenseRepairs & Maintenance Expense

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