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Sheridan Quest Games Co. adjusts its accounts annually. The following information is available for the year ended December 31, 2020.
1.Purchased a 1-year insurance policy on June 1 for $1,500 cash.
2.Paid $6,200 on August 31 for 5 months’ rent in advance.
3.On September 4, received $3,510 cash in advance from a company 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 $1,200 per month. Paid for the first 2 months on November 30. (Hint: Use the account Prepaid Cleaning to record prepayments.)
5.On December 5, received $1,300 in advance from a gaming club. Determined that on December 31, $475 of these games had not yet been played.
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