a) Make initial journal entries. b) Make entries that are adjusted for December 31, 2017. Action Quest

a) Make initial journal entries.

b) Make entries that are adjusted for December 31, 2017.

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Action Quest Games adjusts its accounts annually. Assume that any prepaid expenses are initially recorded in asset accounts. Assume that any revenue collected in advance is initially recorded as liabilities. The following information is available for the year ended December 31, 2017: 1. A $3,540 one-year insurance policy was purchased on April 1, 2017. 2. Paid $5,450 on August 31, 2017, for five months' rent in advance. 3. 4. 5. On September 27, 2017, received $3,450 cash from a corporation that sponsors games for the most improved students attending a nearby school. The $3,450 was for 10 games, worth $345 each, that are played on the first Friday of each month starting in October. (Use the Unearned Revenue account.) Signed a contract for cleaning services starting December 1, 2017, for $490 per month. Paid for the first three months on November 30, 2017. On December 15, 2017, sold $870 of gift certificates to a local game club. On December 31, 2017, determined that $570 of these gift certificates had not yet been redeemed. (Use the account Unearned Revenue.) Action Quest Games adjusts its accounts annually. Assume that any prepaid expenses are initially recorded in asset accounts. Assume that any revenue collected in advance is initially recorded as liabilities. The following information is available for the year ended December 31, 2017: 1. A $3,540 one-year insurance policy was purchased on April 1, 2017. 2. Paid $5,450 on August 31, 2017, for five months' rent in advance. 3. 4. 5. On September 27, 2017, received $3,450 cash from a corporation that sponsors games for the most improved students attending a nearby school. The $3,450 was for 10 games, worth $345 each, that are played on the first Friday of each month starting in October. (Use the Unearned Revenue account.) Signed a contract for cleaning services starting December 1, 2017, for $490 per month. Paid for the first three months on November 30, 2017. On December 15, 2017, sold $870 of gift certificates to a local game club. On December 31, 2017, determined that $570 of these gift certificates had not yet been redeemed. (Use the account Unearned Revenue.)

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a Initial journal entries 1 Apr 1 2017 Insurance Expense 3540 Prepaid Ins... View the full answer