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 $1,440 cash. 2. Paid $5,800 on August 31 for 5 months' rent in advance. 3. On September 4, received $4,230 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 $950 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.) 5. On December 5, received $1,400 in advance from a gaming club. Determined that on December 31, $350 of these games had not yet been played. Record each of the above transactions in the tabular summary that follows. (If a 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.) 2017 June 1 Aug. 31 Cash Prepd. Insur. Assets Prepd. Rent Prepd. Clean. = Liabilities + Unearned Serv. Rev. Com. Stock Stockholders' Equity Rev. Retained Earnings Exp. Div
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 $1,440 cash. 2. Paid $5,800 on August 31 for 5 months' rent in advance. 3. On September 4, received $4,230 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 $950 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.) 5. On December 5, received $1,400 in advance from a gaming club. Determined that on December 31, $350 of these games had not yet been played. Record each of the above transactions in the tabular summary that follows. (If a 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.) 2017 June 1 Aug. 31 Cash Prepd. Insur. Assets Prepd. Rent Prepd. Clean. = Liabilities + Unearned Serv. Rev. Com. Stock Stockholders' Equity Rev. Retained Earnings Exp. Div
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text: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 Service Revenue for item 3 and Repairs and Maintenance Expense for item 4.) (If a 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.)
= Liabilities +
Stockholders' Equity
2017
Dec. 31
Dec. 31
Dec. 31
Dec. 31
Dec. 31
Cash
+
LINK TO TEXT
Prepd.
Insur.
Assets
+
Prepd.
Rent
Prepd.
Clean.
Unearned
= Serv. Rev. +
Click if you would like to Show Work for this question: Open Show Work
Com.
Stock
+
Rev.
Retained Earnings
Exp.
Div
Transcribed Image Text: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 $1,440 cash.
2. Paid $5,800 on August 31 for 5 months' rent in advance.
3. On September 4, received $4,230 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 $950 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.)
5. On December 5, received $1,400 in advance from a gaming club. Determined that on December 31, $350 of these games had not yet been played.
Record each of the above transactions in the tabular summary that follows. (If a 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.)
2017
June 1
Aug. 31
Sept. 4
Nov. 30
Dec. 5
Cash
LINK TO TEXT
Prepd.
Insur.
Assets
+
Prepd.
Rent
+
Prepd.
Clean.
=
=
Liabilities +
Unearned
Serv. Rev. +
Com.
Stock
+
Stockholders' Equity
Rev.
Retained Earnings
Exp.
Div
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