GB 518-Action Quest Games Inc. adjusts its accounts annually.
Question # 00502421
Posted By:
Updated on: 03/20/2017 01:33 AM Due on: 03/20/2017
Action Quest Games Inc. adjusts its accounts annually. The following information is available
for the year ended December 31, 2017.
1
.
2
.
3
.
4
.
5
. Purchased a 1-year insurance policy on June 1 for $2,520 cash.
Paid $6,350 on August 31 for 5 months’ rent in advance.
On September 4, received $3,330 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 $1,400 in advance from a gaming club. Determined that on
December 31, $350 of these games had not yet been played. For each of the above transactions, prepare the journal entry to record the initial transaction. (If no
entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account
titles are automatically indented when the amount is entered. Do not indent manually.) No Dat Account Titles and
.
e Explanation Debi Credi
t
t 1.
Prepaid Insurance 2,520 Cash 2,520 2
.
Prepaid Rent 6,350 Cash 6,350 3
.
Cash 3,330 Unearned Service 4
. 3,330 Prepaid Cleaning 1,600 Cash 1,600 5
.
Cash 1,400 Unearned Service 1,400 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 Maintenance and Repairs
Expense for item 4.) (Round answers to 0 decimal places, e.g. 5,275. If no entry is required,
select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are
automatically indented when the amount is entered. Do not indent manually.)
No
.
1. Date
Dec. 31,
2017 Account Titles and
Explanation
Insurance Expens Debit
2520 Prepaid Insurance 2. Dec. 31,
2017 Rent Expense 2520
6350 Prepaid Rent 3. Dec. 31,
2017 Service Revenue 6350
3330 Unearned Service 4. Dec. 31,
2017 Maintenance and 3330
1600 Unearned Service 5. Dec. 31,
2017 Cash Credit 1600
1400
for the year ended December 31, 2017.
1
.
2
.
3
.
4
.
5
. Purchased a 1-year insurance policy on June 1 for $2,520 cash.
Paid $6,350 on August 31 for 5 months’ rent in advance.
On September 4, received $3,330 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 $1,400 in advance from a gaming club. Determined that on
December 31, $350 of these games had not yet been played. For each of the above transactions, prepare the journal entry to record the initial transaction. (If no
entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account
titles are automatically indented when the amount is entered. Do not indent manually.) No Dat Account Titles and
.
e Explanation Debi Credi
t
t 1.
Prepaid Insurance 2,520 Cash 2,520 2
.
Prepaid Rent 6,350 Cash 6,350 3
.
Cash 3,330 Unearned Service 4
. 3,330 Prepaid Cleaning 1,600 Cash 1,600 5
.
Cash 1,400 Unearned Service 1,400 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 Maintenance and Repairs
Expense for item 4.) (Round answers to 0 decimal places, e.g. 5,275. If no entry is required,
select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are
automatically indented when the amount is entered. Do not indent manually.)
No
.
1. Date
Dec. 31,
2017 Account Titles and
Explanation
Insurance Expens Debit
2520 Prepaid Insurance 2. Dec. 31,
2017 Rent Expense 2520
6350 Prepaid Rent 3. Dec. 31,
2017 Service Revenue 6350
3330 Unearned Service 4. Dec. 31,
2017 Maintenance and 3330
1600 Unearned Service 5. Dec. 31,
2017 Cash Credit 1600
1400
-
Rating:
/5
Solution: GB 518-Action Quest Games Inc. adjusts its accounts annually.