Colada Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2021: 1. 2. 3. 4. 5. Purchased a one-year insurance policy on June 1 for $1,800 cash. Paid $7,120 on August 31 for five months' rent in advance. On September 4, received $3,780 cash in advance from a corporation to sponsor a game each month for a total of nine months for the most improved students at a local school. Signed a contract for cleaning services starting December 1, for $1,070 per month. Paid for the first two months on November 30. (Hint: Use the account Prepaid Cleaning to record this prepayment.) On December 5, received $1,650 in advance from a gaming club. Determined that on December 31, $480 of these games had not yet been played.

Colada Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2021: 1. 2. 3. 4. 5. Purchased a one-year insurance policy on June 1 for $1,800 cash. Paid $7,120 on August 31 for five months' rent in advance. On September 4, received $3,780 cash in advance from a corporation to sponsor a game each month for a total of nine months for the most improved students at a local school. Signed a contract for cleaning services starting December 1, for $1,070 per month. Paid for the first two months on November 30. (Hint: Use the account Prepaid Cleaning to record this prepayment.) On December 5, received $1,650 in advance from a gaming club. Determined that on December 31, $480 of these games had not yet been played.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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