Larkspur, Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2020. 1. 2. 3. Purchased a 1-year insurance policy on June 1 for $1,200 cash. Paid $5,600 on August 31 for 5 months' rent in advance. On September 4, received $3,870 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 $800 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.) On December 5, received $1,300 in advance from a gaming club. Determined that on December 31, $550 of these games had not yet been played. 4 5. Debit Cret Date Account Titles and Explanation 1.200 June 1, 2020 Prepaid Insurance Cash 5,600 Aug. 31, 2020 Prepaid Rent Cash 3,870 Sept. 4. 2020 Cash Unearned Service Revenue 1,600 Nov. 30, 2020 Prepaid Cleaning Cash 1,300 Dec. 5, 2020 Cash Unearned Service Revenue 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 Repairs and Maintenance Expense for item 4.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Debit Credit Date Account Titles and Explanation Dec. 31, Insurance Expense 2020 1 700 Prepaid Insurance 700 2. Dec. 31, 2020 Rent Expense 4,480 Prepaid Rent 4,480 3. Dec 31, 2020 Unearned Service Revenue 1,720 Service Revenue 1,720 4. Dec. 31, 2020 Maintenance and Repairs Expense 800 Prepaid Cleaning 800 5. Dec. 31, 2020 Unearned Service Revenue 750 Service Revenue 750 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.) (Post entries in the order displayed in the problem statement.) Prepaid Insurance June 1 1200 Dec. 31 Adj. 700 Dec. 31 Adj. 500 Prepaid Rent Aug. 31 Dec. 31 Adi. 4.480 Unearned Service Revenue Dec 31 Adj. Sept. 4 V Dec 31 Adi Dec. 5 Prepaid Cleaning Nov. 30 Dec. 31 Adj. Prepaid Cleaning Nov. 30 Dec 31 Adj. Insurance Expense Dec. 31 Adj. Rent Expense Dec. 31 Adj. Service Revenue > Dec. 31 Adj. Dec. 31 Adi.