ONLY QUESTION C

E4-4 Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2018: 1. Purchased a one-year insurance policy on June 1, for $1,800 cash. 2. Paid S6,500 on August 31 for five months' rent in advance. 3. On September 4, received S3,600 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. November 30. (Hint: Use the account Prepaid Services to record this prepayment.) had not yet been played. 4. Signed a contract for cleaning services starting December 1, for $1,000 per month. Paid for the first two months on 5. On December 5, received $1,500 in advance from a gaming club. Determined that on December 31, $475 of these games Instructions (a) For each of the above transactions, prepare the journal entry to record the initial transaction. (b) For each of the above transactions, prepare the adjusting journal entry that is required on December 31 (Hint: Use the account Sponsorship Revenue for item 3 and Repairs and Maintenance Expense for item 4.) (c) Post the journal entries in parts (a) and (b) to T accounts and determine the final balance in each account balance. (Note: Posting to the Cash account is not required.)