Question

Part I. The trial balance for Game Time on December 31 is as follows:

	Game Time
	Trial Balance
	December 31, 2019
Account Name	Debit	Credit
Cash	8,721
Prepaid Insurance	1,295
Equipment	17,642
Accumulated Depreciation - Equipment		2,287
Repair Equipment	1,265
Accumulated Depreciation – Repair Equipment		880
Accounts Payable		942
B. Ryan, Capital		23,871
B. Ryan, Drawing	2,000
Game Fees		1,954
Concession Fees		3,752
Wages Expense	1,068
Rent Expense	980
Utilities Expense	246
Repair Expense	180
Supplies Expense	257
Miscellaneous Expense	32
Total	33,686	33,686

Data for month-end adjustments are as follows:

Expired or used-up insurance, $1,200

Depreciation expense on equipment, $2,200

Depreciation expense on repair equipment, $400

Wages accrued or earned since the last payday, $1,750 (owed and to be paid on the next payday)

Question 1 (40 points). Complete a work sheet attached for the month. (use the separate answer sheet provided)

Question 2 (10 points). Journalize the adjusting entries below.

Date	Account	Debit	Credit
For expired insurance
December 31, 2019
For Depreciation Exp. - Equipment
December 31, 2019
For Depreciation Exp. – Repair Equip.
December 31, 2019
For Accrued Wage
December 31, 2019

Part II.

Question 1. Describe the Accrued Revenue, Accrued Expense, Deferred Revenue, and Deferred Expense in detail. Give me at least one example and the journal entries for them. (20 points)

Answer 1

Part I

Date	Account	Debit	Credit
Dec. 31	For expired insurance:
	Insurance Expense	$1,200
	Prepaid Insurance		$1,200
Dec. 31	For Depreciation Exp. - Equipment:
	Depreciation Expense-equipment	$2,200
	Accumulated depreciation-Equipment		$2,200
Dec. 31	For Depreciation Exp. – Repair Equip.:
	Depreciation Expense-equipment	$400
	Accumulated depreciation-Equipment		$400
Dec. 31	For Accrued Wage:
	Wages Expense	$1,750
	Wages payable		$1,750

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Part II

1	Accrued revenue	Revenue earned for the goods or services provided but cash was not received yet. For example credit sale.
2	Accrued Expense	An expense incurred during the period but no payment was made for the expense yet. For example salaries due but not yet paid.
3	Deferred revenue	Revenue received in advance against the services which will be provided in the near future. For example Consultancy fees received in advance.
4	Deferred expense	Expense paid in advance, for example, Prepaid rent.

_____________________________________

Journal entries:

Trn.	Account	Debit	Credit
1)	Accounts receivable	xxxx
	Sales / Service revenue		xxxx
2)	Salaries Expense	xxxx
	Salaries payable		xxxx
3)	Cash	xxxx
	Unearned revenue		xxxx
4)	Prepaid Rent	xxxx
	Cash		xxxx