Return to Blackboard Return to Blackboard Kimmel, Survey of Accounting, 1e, for

Question

Return to Blackboard Return to Blackboard Kimmel, Survey of Accounting, 1e, for Central New Mexico Community College Home Read, Study& Practice Gradebook ORION Assignment Open Assignment PRINTER VERSTON BACK Exercise 4-16 Action Quest Games Inc. adjusts its accounts annually. The following informaion 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 $6,750 on August 31 for S months' rent in advance. 3. On September 4, received $3,150 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. 5. on December 5' received $1,700 in advance from a gaming dub. Determined that on December 31, $400 of these games had not yet been played. Exercise 4- Exercise 4-12 Signed a contract for deaning services starting December 1 for $1,200 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.) Reviow Re Record each of the above transactions in the tabular summary that follows. If a transaction results in decrease in Assets, Liabilities or Stockholders' Equity, place parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) negative sign or Assets Stockholders' Equity Prepd. Cash Insur. Prepd. RentClean Serv. Rev.Stock + Retained Earnings Exp, Prepd. Unearned Com. 2017 June 1 Aug. 31 Sept. 4 Nov. 30 Dec. 5 Rev. Div Version 4.24.5.1

Explanation / Answer

Solution:

2017 Assets = Liabilities + Stockholder's Equity Retained Earnings Cash + Prepaid Insurance + Prepaid Rent + Prepaid Cleaning = Unearned Service Revenue Common Stock Revenue - Expenditure - Dividend 1-Jun -$2,760.00 $2,760.00 31-Aug -$6,750.00 $6,750.00 4-Sep $3,150.00 $3,150.00 30-Nov -$2,400.00 $2,400.00 5-Dec $1,700.00 $1,700.00

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