Question
Sandhill 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
Sandhill 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 $1,764 cash. | |
2. | Paid $6,370 on August 31 for 5 months rent in advance. | |
3. | On September 4, received $3,528 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 $980 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 $1,470 in advance from a gaming club. Determined that on December 31, $470 of these games had not yet been played. |
(a)
Record each of the above transactions in the tabular summary that follows. (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 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2022 | Cash | + | Prepd. Insur. | + | Prepd. Rent | + | Prepd. Clean. | Unearned Serv. Rev. | Com. Stock | + | Retained Earnings | ||||||||
= | + | Rev. | - | Exp. | - | Div | |||||||||||||
June 1 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||||||||
Aug. 31 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||||||||
Sept. 4 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||||||||
Nov. 30 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | ||||||||||
Dec. 5 | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount | enter a dollar amount |
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