I need help with figuring out part C. Would also appreciate math and work/ explanation shown if possible for Parts A,B, and along with C. Just pieced Parts A and B together without really knowing what I was doing. Thanks.
Pina Colada Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2022. 1. 2 3. Purchased a 1-year insurance policy on June 1 for $1,920 cash. Paid $6,630 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 $1,020 per month. Paid for the first 2 months on November 30. (Hint. Use the account Prepaid Cleaning to record prepayments.) On December 5, received $1.530 in advance from a gaming club. Determined that on December 31, $485 of these games had not yet been played. 4. 5. . (a) Your answer is correct. For each of the above transactions, prepare the journal entry to record the initial transaction. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually) Date Account Titles and Explanation Debit Credit une 1, 2022 Prepald Insurance 1920 cash wg. 31, 2022 Prepaid Rent TITLE 6630 cash ept.4.2022 cash 3690 Unearned Service Revenue lov. 30, 2022 V Prepaid Cleaning 2040 cash Jec.5.2022 cash 1530 Unearned Service Revenue (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 3 and Maintenance and Repairs Expense for item 4.) (Round answers to decimal places, eg. 5,275. If no entry is required, select "No Entry" for the account titles and enter for the amounts. 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 Insurance Expense 1120 Prepald Insurance 1120 2. Dec. 31, 2022 Rent Expense 5304 Prepaid Rent 5304 3. Dec. 31, 2022 Uneamed Service Revenue 1640 Service Revenue THE JUOOOOOOO 1640 4. Dec. 31, 2022 Maintenance and Repairs Expense 1020 Prepald Cleaning 1020 5. Dec. 31, 2022 Uneared Service Revenue 1045 Service Revenue 1045 (c) Your answer is partially correct. 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. (Round answers to decimal places, eg. 5,275. Post entries in the order displayed in the problem statement.) Prepaid Insurance June 1 1920 Dec. 31 Adj. Dec 31 Bal Prepaid Rent Aug 31 Dec 31 Ad Dec 31 Bal. Unearned Service Revenue 100 l Dec 31 Ad). V Sept. 4 Dec 31 Adj. Dec. 5 Dec. 31 Bal Prepaid Cleaning Nov. 30 Dec 31 Ad Dec 31 Bal. Insurance Expense Dec 31 Ad). 1020 Rent Expense Dec 31 Ad). Service Revenue Dec 31 Adt. Service Revenue Dec. 31 Ad Dec. 31 Ad). V 1045 Dec 31 Bal V Maintenance and Repairs Expense Dec 31 Adj. 1020
