Question

Current Attempt in Whispering Winds Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2022 1. 2 3. Purchased a 1-year insurance policy on June 1 for $1,740 cash. Paid $5,980 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 $920 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.) On December 5, received $1,380 in advance from a gaming club. Determined that on December 31, $435 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. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Date June 1, 2022 1. 2. Aug 31, 2022 3. Sept. 4, 2022 4. Nov. 30, 2022

Answer 1

Credit Determinig the final balance in each account balance. Prepaid Insurance 01-Jun-22 $ 1,740 31-Dec-22 $ 1,015 31-Dec-22 $ 725 $1,740 $5,980 Journal Entries to record initil transactions. No Date Account Title and Explanation Debit 1 01-Jun-22 Prepaid Insurance $1,740 Cash 2 31-Aug-22 Prepaid Rent $5,980 Cash 3 04-Sep-22 Cash $3,330 Unearned Service Revenue 4 30-Nov-22 Prepaid Cleaning $ 920 Cash 5 05-Dec-22 Cash $ 1,380 Unearned Service Revenue Prepaid Rent 31-Aug-22 $ 31-Dec-22 $ 4,784 5,980 31-Dec-22 $ 1,196 $3,330 $ 920 Unearned Service Revenue 31-Dec-22 $ 1,480 04-Sep-22 $ 31-Dec-22 $ 945 05-Dec-22 $ 31-Dec-22 $ $ 1,380 3,330 1,380 2,285 Credit Working 1015.0 (1740/12)*7 Prepaid Cleaning 30-Nov-22 $ 31-Dec-22 $ 460 920 31-Dec-22 $ 460 $1,015 4784.0 (5980/5)*4 $4,784 Adjusted Journal Entries on December 31. No Date Account Title and Explanation Debit 1 31-Dec-22 Insurance Expense $1,015 Prepaid Insurance 2 31-Dec-22 Rent Expenses $4,784 Prepaid Rent 3 31-Dec-22 Unearned Service Revenue $1,480 Service Revenue 4 31-Dec-22 Maintenance & Repairs Expenses $ 460 Prepaid Cleaning 5 31-Dec-22 Unearned Service Revenue $ 945 Service Revenue Insurance Expense 31-Dec-22 $ 1480.0 (3330/9)*4 1,015 $1,480 460.0 (920/2)*1 Rent Expense 31-Dec-22 $ $ 460 4,784 945.0 1380-435 $ 945 Service Revenue 31-Dec-22 $ 31-Dec-22 $ 1,480 945 Maintenance & Repairs Expenses 31-Dec-22 $ 460 Note: Please Comment down for any further clarifications.