Question

WileyPLUSI MyWileyPLUS I Hele I Contect Us I Los Weygandt, Accounting Principles, 13e PRINCIPLES OF ACCT 1&II (ACC 114/1 tice Assignment Gradebook ORION Downloadable eTextbook ament CALCULATOR FULL SCREEN PRINTER VERSION BACK NEXT Exercise 3-15 Pharoah Quest Games Co. adjusts its accounts annually. The following information is available for the year ended December 31, 2020. 1. Purchased a 1-year insurance policy on June 1 for $1,740 cash. 2. Paid $6,100 on August 31 for 5 months' rent in advance. On September 4, received $3,150 cash in advance from a company to sponsor a game each month for a total of 9 months for the most improved students at a local school. 3. Signed a contract for cleaning services starting December 1 for $900 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.) On December 5, received $2,000 in advance from a gaming club. Determined that on December 31, $460 of these games had not yet been played. 4. 5.

Answer 1

Dec, 31	Insurance Expense	$   870.00
	Prepaid Insurance		$   870.00
Dec, 31	Rent Expense	$ 4,880.00
	Prepaid Rent		$ 4,880.00
Dec, 31	Unearnded Service Revenue	$ 1,400.00
	Service Revenue		$ 1,400.00
Dec, 31	Maintainance and repairs Expense	$   900.00
	Prepaid Closing		$   900.00
Dec, 31	Unearnded Service Revenue	$ 1,540.00
	Service Revenue		$ 1,540.00

Prepaid Insurance
6 / 1	$ 1,740.00	12/ 31 Adj	$     870.00
		Bal	$    870.00
Prepaid Rent
8/ 31	$ 6,100.00	12/ 31 Adj	$   4,880.00
Unearned Service Revenue
12/ 31 Adj	$ 2,940.00	9/4	$   3,150.00
Bal	$ 2,210.00	5/12	$   2,000.00
Prepaid Cleaning
30/ 11	$ 1,800.00	12/ 31 Adj	$     900.00
		Bal	$     900.00
Insurance Expense
12/ 31 Adj	$   870.00
Rent Expense
12/31 Adj	$ 4,880.00
Service Revenue
		12/ 31 Adj	$   1,400.00
		12/ 31 Adj	$   1,540.00
Maintenance and Repairs Expense
12/31 Adj	$   900.00