Texts: Swifty Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 2022:
1. Purchased a 1-year insurance policy on June 1 for $1,476 cash.
2. Paid $5,330 on August 31 for 5 months' rent in advance.
3. On September 4, received $2,952 cash in advance from a corporation to sponsor a game each month for a total of 9 students at a local school.
4. Signed a contract for cleaning services starting December 1 for $820 per month. Paid for the 2 months on November 30. (Hint: Use the account "prepaid cleaning" to record prepayments)
5. On December 5, received $1,230 in advance from a gaming club. Determined that on December 31, $390 of the games had not yet been played.
1. For each of the above transactions, prepare the journal entry to record the initial transaction.
2. For each of the above transactions, prepare the adjusting journal entry that is required on December 31. (Hint: Use the account "service revenue" for item 3 and "maintenance and repairs expenses" for item 4)
3. Post the journal entries in parts (a) and (b) to T-accounts and determine the final balance in each account.