In addition to the above accounts, VGC’s chart of accounts includes the following: Service Revenue, Salaries and Wages Expense, Advertising Expense, and Utilities Expense. The January transactions are shown below: Received $50,000 cash from customers on 1/1 for subscriptions that had already been earned in 2017. Purchased 10 new computer servers for $33,500 on 1/2; paid $10,000 cash and signed a three-year note for the remainder owed. Paid $10,000 for an Internet advertisement run on 1/3. On January 4, purchased and received $3,000 of supplies on account. Received $170,000 cash on 1/5 from customers for service revenue earned in January. Paid $3,000 cash to a supplier on January 6. On January 7, sold 15,000 subscriptions at $15 each for services provided during January. Half was collected in cash and half was sold on account. Paid $378,000 in wages to employees on 1/30 for work done in January. On January 31, received an electric and gas utility bill for $5,350 for January utility services. The bill will be paid in February. Record the transaction for each action.
In addition to the above accounts, VGC’s chart of accounts includes the following: Service Revenue, Salaries and Wages Expense, Advertising Expense, and Utilities Expense. The January transactions are shown below: Received $50,000 cash from customers on 1/1 for subscriptions that had already been earned in 2017. Purchased 10 new computer servers for $33,500 on 1/2; paid $10,000 cash and signed a three-year note for the remainder owed. Paid $10,000 for an Internet advertisement run on 1/3. On January 4, purchased and received $3,000 of supplies on account. Received $170,000 cash on 1/5 from customers for service revenue earned in January. Paid $3,000 cash to a supplier on January 6. On January 7, sold 15,000 subscriptions at $15 each for services provided during January. Half was collected in cash and half was sold on account. Paid $378,000 in wages to employees on 1/30 for work done in January. On January 31, received an electric and gas utility bill for $5,350 for January utility services. The bill will be paid in February. Record the transaction for each action.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 5PB: Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet...
Related questions
Question
In addition to the above accounts, VGC’s chart of accounts includes the following: Service Revenue, Salaries and Wages Expense, Advertising Expense, and Utilities Expense.
The January transactions are shown below:
- Received $50,000 cash from customers on 1/1 for subscriptions that had already been earned in 2017.
- Purchased 10 new computer servers for $33,500 on 1/2; paid $10,000 cash and signed a three-year note for the remainder owed.
- Paid $10,000 for an Internet advertisement run on 1/3.
- On January 4, purchased and received $3,000 of supplies on account.
- Received $170,000 cash on 1/5 from customers for service revenue earned in January.
- Paid $3,000 cash to a supplier on January 6.
- On January 7, sold 15,000 subscriptions at $15 each for services provided during January. Half was collected in cash and half was sold on account.
- Paid $378,000 in wages to employees on 1/30 for work done in January.
- On January 31, received an electric and gas utility bill for $5,350 for January utility services. The bill will be paid in February.
Record the transaction for each action.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting
Accounting
ISBN:
9781305088436
Author:
Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning