Exercise 4-17 (Part Level Submission) Action Quest Games Inc. adjusts its accoun

Question

Exercise 4-17 (Part Level Submission) 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 $2,040 cash. 2. Paid $5,900 on August 31 for 5 months' rent in advance. 3. On September 4, received $2,880 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 $800 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.) On December 5, received $1,550 in advance from a gaming club. Determined that on December 31, $600 of these games had not yet been played 4.

Explanation / Answer

PREPAID INSURANCE Jun-01 2040 Dec-31 1190 Dec 31 End balance 850 PREPAID RENT Aug-31 5900 Dec-31 4720 Dec 31 End balance 1180 UNEARNED SERVICE REVENUE Dec-31 1280 Sep-04 2880 Dec-31 950 Dec-05 1550 Dec 31 End balance 2200 PREPAID CLEANING Nov-30 1600 Dec-31 800 Dec 31 End balance 800 INSURANCE EXPENSE Dec-31 1190 RENT EXPENSE Dec-31 4720 SERVICE REVENUE Dec-31 1280 Dec-31 950 2230 MAINTENANCE AND REPAIRS EXPENSE Dec-31 800

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.