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Blossom Quest Games adjusts its accounts annually. The following information is available for the year ended...

Blossom Quest Games adjusts its accounts annually. The following information is available for the year ended December 31, 202For each of the above transactions, prepare the adjusting journal entry that is required on December 31, (Hint: Use the accouPost the journal entries in parts (a) and (b) to T-accounts and determine the final balance in each account balance. (Note: P

Blossom Quest Games adjusts its accounts annually. The following information is available for the year ended December 31, 2020. 1. Purchased a 1-year insurance policy on June 1 for $1,980 cash. 2. Paid $6,700 on August 31 for 5 months' rent in advance. 3. On September 4, received $3,060 cash in advance from a company 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 $800 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 $1,000 in advance from a gaming club. Determined that on December 31, $480 of these games had not yet been played. For each of the above transactions, prepare the journal entry to record the initial transaction. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles Debit Credit Date June 1 Aug. 31 Sept. 4 Nov. 30 Dec. 5
For each of the above transactions, prepare the adjusting journal entry that is required on December 31, (Hint: Use the account Service Revenue for item 3 and Maintenance and Repair Expense for item 4.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation 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)
Post the journal entries in parts (a) and (b) to T-accounts and determine the final balance in each account balance. (Note: Posting to the Cash account is not required.) (Post entries in the order of Journal entry presented in the previous part.) Prepaid Insurance Prepaid Rent Unearned Service Revenue Prepaid Cleaning Insurance Expense Rent Expense Service Revenue Maintenance and Repairs Expense
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Answer #1
Journal Entries
Date Particulars Debit Credit
1-Jun Prepaid Insurance $ 1,980.00
To Cash $ 1,980.00
31-Aug Prepaid Rent $ 6,700.00
To Cash $ 6,700.00
4-Sep Cash $ 3,060.00
To Unearned Service Revenue $ 3,060.00
30-Nov Prepaid Cleaning $ 1,600.00
To Cash $ 1,600.00
5-Dec Cash $ 1,000.00
To Unearned Service Revenue $ 1,000.00
Adjusting Entries
Date Particulars Debit Credit
31-Dec Insurance Expense $ 1,155.00
To Prepaid Insurance $ 1,155.00
($ 1980 x 7/12)
31-Dec Rent Expense $ 5,360.00
To Prepaid Rent $ 5,360.00
($ 6700 x 4/5)
31-Dec Unearned Service Revenue $ 1,360.00
To Service Revenue $ 1,360.00
($ 3060 x 4/9)
31-Dec Maintenance and Repaid Exp $    800.00
To Prepaid Cleaning $    800.00
($ 1600 x 1/2)
31-Dec Unearned Service Revenue $    520.00
To Service Revenue $    520.00
($ 1000 - $ 480)
Prepaid Insurance Rent Expense
1-Jun $ 1,980.00 31-Dec $ 1,155.00 31-Dec $ 5,360.00 End. Bal $ 5,360.00
End. Bal $    825.00
Prepaid Rent Service Revenue
31-Aug $ 6,700.00 31-Dec $ 5,360.00 End. Bal. $ 1,880.00 31-Dec $ 1,360.00
End. Bal. $ 1,340.00 31-Dec $    520.00
Unearned Service Revenue Maintenance and Repair Expense
31-Dec $ 1,360.00 4-Sep $ 3,060.00 31-Dec $    800.00 End. Bal $    800.00
31-Dec $    520.00 5-Dec $ 1,000.00
End. Bal. $ 2,180.00
Prepaid Cleaning
30-Nov $ 1,600.00 31-Dec $    800.00
End. Bal $    800.00
Insurance Expense
31-Dec $ 1,155.00 End. Bal $ 1,155.00
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