Question

Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2017. 1. Purchased a 1-year insurance policy on June 1 for $2,760 cash. 2. Paid $6,000 on August 31 for 5 months’ rent in advance. 3. On September 4, received $4,140 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. 4. 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.) 5. On December 5, received $1,300 in advance from a gaming club. Determined that on December 31, $450 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.) (Round answers to 0 decimal places, e.g. 5,275. Post entries in the order displayed in the problem statement.)

Prepaid Insurance
choose a transaction date June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a debit amount	choose a transaction date June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a credit amount
choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a debit balance	choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a credit balance

Prepaid Rent
choose a transaction date June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a debit amount	choose a transaction date June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a credit amount
choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a debit balance	choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a credit balance

Unearned Service Revenue
choose a transaction date June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a debit amount	choose a transaction date June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a credit amount
choose a transaction date June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a debit amount	choose a transaction date June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a credit amount
choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a debit balance	choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a credit balance

Prepaid Cleaning
choose a transaction date June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a debit amount	choose a transaction date June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a credit amount
choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a debit balance	choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a credit balance

Insurance Expense
choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a debit balance	choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a credit balance

Rent Expense
choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a debit balance	choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a credit balance

Service Revenue
choose a transaction date June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a debit amount	choose a transaction date June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a credit amount
choose a transaction date June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a debit amount	choose a transaction date June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a credit amount
choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a debit balance	choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a credit balance

Maintenance and Repairs Expense
choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a debit balance	choose the end date of the accounting period June 1Aug. 31Sept. 4Nov. 30Dec. 5Dec. 31 Adj.Dec. 31 Bal.	enter a credit balance

Plagiarism Report |. A citation genera.. NEXT +E CALCULATOR PRINTER VERSION BACK ASSIGNMENT RESOURCES Quiz GREreliminary Exercise 3-20 (Part evel (Part Account Titles and Explanation Credit No. Date Debit Dec. 31, 2017 [nsurance Expense 1. 1610 Prepaid Insurance 1610 Level Submission Revicw Score Review Results by Study Objective Dec. 31, 2017 Rent Expense 2. 4800 Prepaid Rent 4800 1840 Dec. 31, 2017 Uneamed Service Revenue 3. Service Revenue 1840 4. Dec. 31, 2017 Maintenance and Repairs Expense 850 Prepaid Cleaning 850 Dec. 31, 2017 No Entry 5. 0 No Entry Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT A citation genera.. Plagiarism Report |. +E NEXT CALCULATOR PRINTER VERSION BACK ASSIGNMENT RESOURCES 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.) Quiz GREreliminary Exercise 3-20 (Part eve (Part No. Date Account Titles and Explanation Debit Credit 1. Prepaid Insurance 2760 June 1, 2017 Level Submission) Revicw Score Review Results by Study Objective Cash 2760 Prepaid Rent 2 6000 Aug. 31, 2017 Cash 6000 Sept. 4, 2017 3 Cash 4140 Unearned Service Revenue 4140 Prepaid Cleaning 1700 Nov. 30, 2017 Cash 1700 1300 Dec. 5, 2017 Cash 1300 Unearned Service Revenue Click if you would like to Show Work for this question Open Show Work eunweT nE ACCOUNTO

Answer 1

a)
No	Date	Account Titles and Explanation	Debit ($)	Credit ($)
1	June 1, 2017	Prepaid insurance	2760
		Cash		2760
2	Aug. 31, 2017	Prepaid rent	6000
		Cash		6000
3	Sept. 4, 2017	Cash	4140
		Unearned service revenue		4140
4	Nov. 30, 2017	Prepaid cleaning	1700
		Cash		1700
5	Dec. 5, 2017	Cash	1300
		Unearned revenue		1300

b)
No	Date	Account Titles and Explanation	Debit ($)	Credit ($)
1	Dec.31, 2017	Insurance expense (2760/12*7)	1610
		Prepaid insurance		1610
2	Dec.31, 2017	Rent expense (6000/5*4)	4800
		Prepaid rent		4800
3	Dec.31, 2017	Unearned service revenue (4140/9*4)	1840
		Service revenue		1840
4	Dec.31, 2017	Maintenance and repairs expense (1700/2*1)	850
		Prepaid cleaning		850
5	Dec.31, 2017	Unearned service revenue (1300-450)	850
		Service revenue		850

PREPAID INSURANCE
Jun-01	2760	Dec-31	1610
Ending balance	1150
PREPAID RENT
Aug-31	6000	Dec-31	4800
Ending balance	1200
UNEARNED SERVICE REVENUE
Dec-31	1840	Sep-04	4140
Dec-31	850	Dec-05	1300
		Ending balance	2750
PREPAID CLEANING
Nov-30	1700	Dec-31	850
Ending balance	850
INSURANCE EXPENSE
Dec-31	1610
RENT EXPENSE
Dec-31	4800
SERVICE REVENUE
		Dec-31	1840
		Dec-31	850
			2690
MAINTENANCE AND REPAIRS EXPENSE
Dec-31	850