Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Show Attempt History Current Attempt in Progress Whispering Winds Corp. adjusts its accounts annually. The following information is available for the year ended December 31,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Show Attempt History Current Attempt in Progress Whispering Winds Corp. adjusts its accounts annually. The following information is available for the year ended December 31, 2020. 3 1. Purchased a 1-year insurance policy on June 1 for $1,200 cash. 2. Paid $6,800 on August 31 for 5 months' rent in advance. On September 4, received $2,880 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 $850 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.) On December 5, received $1,450 in advance from a gaming club. Determined that on December 31, $500 of these games had not yet been played 4. 5. Your answer is partially correct. For each of the above transactions, prepare the journal entry to record the initial transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) late Account Titles and Explanation Debit Credit late Account Titles and Explanation Debit Credit 2020 Prepaid Insurance 1.200 1200 1.2020 Prepald Rent 6,800 6.300 2020 2380 Unearned 2880 3.2020 Prepaid Cleaning 1.700 1.700 2020 1450 Unearned Rent Revenue e Textbook and Media lo. Date Account Titles and Explanation Debit Credit Dec. 31, 2020 Insurance Expense 700 Prepaid Insurance 700 Dec. 31, 2020 Rent Expense 5,440 Prepaid Rent 5,440 Dec. 31, 2020 Unearned Rent Revenue 1.280 Service Revenue 1.280 Dec 31, 2020 Maintenance and Repairs Expense 850 Prepaid Cleaning 350 Dec. 31, 2020 Unearned Rent Revenue 950 Service Revenue 95 Post the journal entries in parts (a) and (b) to T-accounts and determine the final balance in each account balance. (N Posting to the Cash account is not required.) (Post entries in the order displayed in the problem statement.) Prepaid Insurance Prepaid Rent Unearned Service Revenue . Prepaid Cleaning Prepaid Cleaning Insurance Expense Rent Expense Service Revenue Maintenance and Repairs Expense

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISO 9000 Family Of Standards With Extracts From ISO 9001 Audit Trail

Authors: David John Seear

1st Edition

1477226400, 978-1477226407

More Books

Students also viewed these Accounting questions