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Sheridan Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2025. 1. Purchased a 1-year insurance
Sheridan Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2025. 1. Purchased a 1-year insurance policy on June 1 for $1,500 cash. 2. Paid $5,460 on August 31 for 5 months' rent in advance. 3. 4. 5. On September 4, received $3,060 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 $840 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.) On December 5, received $1,260 in advance from a gaming club. Determined that on December 31, $400 of these games had not yet been played. 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 presented in the previous parts.) Prepaid Insurance Prepaid Rent Unearned Service Revenue Prepaid Cleaning Insurance Expense Rent Expense Service Revenue Maintenance and Repairs Expense Maintenance and Repairs Expense
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