1.journalise the following 2.prepare adjusting journal entry that is required on

Question

1.journalise the following 2.prepare adjusting journal entry that is required on December 31st 3.post T-accounts and determine the final balance.
Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2018 1. Purchased a one-year insurance policy on June 1, for $ 1,930 cash 2. Paid $ 6.500 on August 31 for five months rent in advance. On September 4, recelved $3,740 cash in advance from a corpora tion to sponsor a game each month for a total of nine months for the most improved students at a local school. account Prepaid Services to record this prepayment been played. 4. Signed a contract for cleaning services starting Dece s. On December S, recelved $ Unresoived in advance from a ganing club. Determined that on December 31. 5 640of these games had not ye

Explanation / Answer

Journalise 01-Jun Prepaid insurance 1930                 Cash 1930 31-Aug Prepaid rent 6500               Cash 6500 04-Sep Cash 3740            Unearned service revenue 3740 30-Nov Prepaid services 3980                Cash 3980 05-Dec Cash Amount missing            Unearned service revenue Adjusting entries 31-Dec Insurance expense 1126 (1930*7/12)              Prepaid insurance 1126 31-Dec Rent expense 5200 (6500*4/5)              Prepaid rent 5200 31-Dec Unearned service revenue 1662 (3740*4/9)                 Service revenue 1662 31-Dec cleaning service expense 1990              Prepaid services 1990

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