style="background-color:rgb(244,237,117);"> 2), AP Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2022.
Prepare post transaction and adjusting entries for prepayments.
- 1. Purchased a 1-year insurance policy on June 1 for $1,800 cash.
- 2. Paid $6,500 on August 31 for 5 months' rent in advance.
- 3. On September 4, received $3,600 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 $1,000 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 $1,500 in advance from a gaming club. Determined that on December 31, $475 of these games had not yet been played.
Recently Asked Questions
- CAN YOU HELP WITH MAKING THE CASH PART OF THIS CORRECT AND THEN I CAN DO THE SPREADSHEET WITH CORRECTED FIGURES PLEASE AND THANK YOU FOREIGN CAPITAL BUDGETING
- Asking for your advice. The CFO explains sales are increasing but there is a constant matter of not having enough cash to meet payroll or pay vendors within 30
- Question 1(15 marks) Lungile, one of your friends at university who studied Marketing, started a business importing machinery from Japan and then selling the