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Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2017. 1 . 2 . 3 . 4 . 5 . Purchased a 1-year insurance policy on June 1 for $2,520 cash. Paid $6,350 on August 31 for 5 months’ rent in advance. On September 4, received $3,330 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. 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.) 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. For each of the above transactions, prepare the journal entry to record the initial transaction. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No Dat Account Titles and
. e Explanation Debi Credi t t 1. Prepaid Insurance 2,520 Cash 2,520 2 . Prepaid Rent 6,350 Cash 6,350 3 . Cash 3,330 Unearned Service 4 . 3,330 Prepaid Cleaning 1,600 Cash 1,600 5 . Cash 1,400 Unearned Service 1,400 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 Repairs Expense for item 4.) (Round answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No . 1. Date Dec. 31, 2017 Account Titles and Explanation Insurance Expens Debit 1470 Prepaid Insurance 2. Dec. 31, 2017 Rent Expense 1470 5080 Prepaid Rent 3. Dec. 31, 2017 Unearned Reven 5080 1480 Service Revenue 4. Dec. 31, 2017 Cleaning Expense 1480 800 prepaid cleaning R 5. Dec. 31, 2017 gaming expense Credit 800 1050 5. Gaming expense 1050 Gaming prepayments 1050