Spruce Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2021: 1. 2. 3. Purchased a one-year insurance policy on June 1 for $1,500 cash. Paid $6,070 on August 31 for five months' rent in advance. On September 4, received $3,510 cash in advance from a corporation to sponsor a game each month for a total of nine months for the most improved students at a local school. Signed a contract for cleaning services starting December 1, for $950 per month. Paid for the first two months on November 30. (Hint: Use the account Prepaid Cleaning to record this prepayment.) On December 5, received $1,600 in advance from a gaming club. Determined that on December 31, $470 of these games had not yet been played. 4. 5. (a) For each of the above transactions, prepare the journal entries to record the initial transaction. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Debit Credit No. Date Account Titles and Explanation 1. 2. For each of the above transactions, prepare the adjusting journal entry that is required on December 31. (Hint: Use the account Sponsorship Revenue for items 3 and 5 and Repairs and Maintenance Expense for item 4.) (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required. select "No Entry for the account titles and enter for the amounts. Round answers to decimal places, eg. 5,275.) No. Date Account Titles and Explanation Debit Credit Dec 31 1. 2 31 31 4. 31 5. 31 Post the above journal entries 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 of journal entries presented in the previous question.) Prepaid Insurance Prepaid Rent Deferred Revenue Prepaid Cleaning Insurance Expense Rent Expense