Exercise 4-3 (Part Level Submission)

Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2015:

1.Purchased a one-year insurance policy on June 1, for $2,120 cash.2.Paid $6,500 on August 31 for five months? rent in advance.3.On September 4, received $3,810 cash in advance from a corporation to sponsor a game each month for a total of nine months for the most improved students at a local school.4.Signed a contract for cleaning services starting December 1, for $1,280 per month. Paid for the first two months on November 30. (Hint:Use the account Prepaid Cleaning to record prepayments.)5.On December 5, received $1,550 in advance from a gaming club. Determined that on December 31, $555 of these games had not yet been played.