Sandhill Quest Games Co. adjusts its accounts annually. The following information is available for the year ended December 31, 2020. For each of the below transactions, prepare the journal entry to record the initial transaction. 1.   Purchased a 1-year insurance policy on June 1 for $1,500 cash. 2.   Paid $6,200 on August 31 for 5 months’ rent in advance. 3.   On September 4, received $3,870 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 $900 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 $1,800 in advance from a gaming club. Determined that on December 31, $470 of these games had not yet been played.

Question

Sandhill Quest Games Co. adjusts its accounts annually. The following information is available for the year ended December 31, 2020. For each of the below transactions, prepare the journal entry to record the initial transaction.

1.   Purchased a 1-year insurance policy on June 1 for $1,500 cash.
2.   Paid $6,200 on August 31 for 5 months’ rent in advance.
3.   On September 4, received $3,870 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 $900 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 $1,800 in advance from a gaming club. Determined that on December 31, $470 of these games had not yet been played.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Other

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: You are the manager in charge of the audit of Nananom Company, a public limited liability company wh...

A: In the audit report, we do require a separate paragraph towards : i) Contingent Liabilities: Kumahwo...

Q: Giant Ltd acquired 80 percent share capital of Expert Ltd. On 1 July 2018 for a cost of $1,600,000. ...

A: Click to see the answer

Q: Describe the ratios used by financial analysts to monitor a company’s investment in inventories

A: There are some ratios which financial analysts use to monitor a company’s investment in inventories:...

Q: On 1 July 2019, Quick Buck Ltd took control of the assets and liabilities of Eldorado Ltd. Quick Buc...

A: Journal entry:   Journal is the book of original entry whereby all the financial transactions are re...

Q: 0. The weighted-average method of process costing differs from the FIFO method of process costing in...

A: Hi student  Since there are multiple questions, we will answer only first question. 

Q: Duncan’s Pizzas is a chain of pizza stores. Pizzas are made fresh in-store and then delivered tocust...

A: Strategic Performance Measurement System:   Strategic performance measurement system is an approach...

Q: Paul is the proprietor of a home based business.  He paid $25,000 to his part-time office manager wh...

A: Given information is: Paul is the proprietor of a home based business.  He paid $25,000 to his part-...

Q: You are a new staff accountant with a large regional CPA firm, participating in your first audit. Yo...

A: Accounting ratios are calculated to measure the liquidity, solvency, and profitability of the busine...

Q: a) Liala Ltd acquired all the issued shares of Jordan Ltd on 1 January 2015. The following transacti...

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any s...