Question
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. |
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