edugen.wileyplus.com Course: Principles of What Happens if Prepaid Expenses Are.
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edugen.wileyplus.com Course: Principles of What Happens if Prepaid Expenses Are.. WileyPLUS Chegg Study | Guided Solutions and... A tabular summary of transactions for.. WileyPLUS: MyWileyPLUS | Help| Contact Us | Log Out WileyPLUS Kimmel, Survey of Accounting, 1e PRINCIPLES OF ACCOUNTING (ACC 201) CALCULATOR STANDARD VIEW PRINTER VERSTON BACK NEXT Exercise 4-16 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 $1,800 cash. 2. Paid $6,500 on August 31 for 5 months' rent in advance. 3. On September 4, received $3,600 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 $1,000 per month. Paid for the fist 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.) 5. On December 5, received $1,500 in advance from a gaming club. Determined that on December 31, $475 of these games had not yet been played Record each of the above transactions in the tabular summary that follows. (Ifa transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Liabilities + Stockholders' Equity Retained Earnings Prepd +Insur. Prepd Prepd +Clean.Serv. Rev.Stock+ Unearned Com. Cash Rent + Rev. Exp. Div 2017 June 1 Aug. 31 Sept. 4 Nov. 30 Dec. 5 For each of the above transactions, record the adjustment that is required on December 31 in the tabular summary from part (a). (Hint: Use the account Serice Revenue for item 3 and Repairs and Maintenance Expense for item 4.) (Ifa transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Assets Liabilities + Stockholders' Equity Retained Earnings Prepd Prepd Prepd Unearned ComExplanation / Answer
Accounting Equation Assets = Liabilities + Stock holders' Equity Date Cash + Account Receivable + Supplies + Prepaid Insurance + Equipment - Accum Dep. Equip. Noted Pay + Account Payable + Int Pay. + Un Earned Rent Rev. + Sal. & Wages Payable Common Stock + Retained Earnings Rev - Exp - Div Balance $15,200.00 $0.00 $2,500 $600 $5,000 $0 $5,000 $2,500 $0 $1,200 $10,000 $10,000 $4,900 500 Supplies Expense -$2,000 $2,000 Insurance Expense -$500 $500 Depreciation $75 $75 Service Performed -$800 $800 Interest Expense $70 $70 Salaries Expense $1,400 $1,400 15200 $0.00 $500.00 $100.00 $5,000.00 $75.00 $5,000.00 $2,500.00 $70.00 $400.00 $1,400.00 $10,000.00 $10,800.00 $8,945.00 $500.00 $20,725.00 $20,725.00
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