Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2018:

Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2018.

1. Purchased a 1-year insurance policy on June 1 for $1,440 cash.

2. Paid $5,800 on August 31 for 5 months rent in advance.

3. On September 4, received $4,230 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 $950 per month. Paid for the first 2 months on November 30.

5. 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 adjusting journal entry that is required on December 31.

Answer rating: 100% (QA)

Adjusting journal Entry for the year ending Dec 2018 Date Accoun... View the full answer