1. Purchased a 1-year insurance policy on June 1 for $ 2,100 cash. 2. Paid $ 6,900 on August 31 for 5 months' rent in advance. On September 4, received $ 3,600 cash in advance from a company to sponsor a game 3. 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 $ 1,200 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record 4. prepayments.) On December 5, received $ 1,600 in advance from a gaming club. Determined that on December 31, $ 440 of these games had not yet been played. 5.
1. Purchased a 1-year insurance policy on June 1 for $ 2,100 cash. 2. Paid $ 6,900 on August 31 for 5 months' rent in advance. On September 4, received $ 3,600 cash in advance from a company to sponsor a game 3. 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 $ 1,200 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record 4. prepayments.) On December 5, received $ 1,600 in advance from a gaming club. Determined that on December 31, $ 440 of these games had not yet been played. 5.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
For each of the above transactions, prepare the adjusting journal entry that is required on December 31,
Transcribed Image Text:1.
Purchased a 1-year insurance policy on June 1 for $ 2,100 cash.
2.
Paid $ 6,900 on August 31 for 5 months' rent in advance.
On September 4, received $ 3,600 cash in advance from a company to sponsor a game
3.
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 $ 1,200 per month. Paid
for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record
4.
prepayments.)
On December 5, received $ 1,600 in advance from a gaming club. Determined that on
December 31, $ 440 of these games had not yet been played.
5.
Transcribed Image Text:Date Account Titles and Explanation
Debit
Dec.
31
(To record insurance used)
Dec.
31
(To record rent used)
Dec.
31
(To record revenue used)
Dec.
31
(To record maintenance)
Dec.
31
(To record monthly revenue)
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