Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $15. At the start of January 2021, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: Cash Accounts Receivable Supplies Equipment. Buildings Land Accounts Payable Deferred Revenue. Notes Payable (due 2025) Common Stock Retained Earnings. $ 1,500,000 150,000 14,700 874,500 422,000 1,200,000 108,000 73,500 60,000 2,500,000 1,419,700 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: a. Received $50,000 cash from customers on 1/1 for subscriptions that had already been earned and charged on account in 2020. b. 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. c. Paid $10,000 for an Internet advertisement run on 1/3. d. On January 4, purchased and received $3,000 of supplies on account. e. Received $170,000 cash on 1/5 from customers for service revenue earned in January. f. On January 6, paid $3,000 cash for supplies purchased on January 4. g. 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. h. Paid $378,000 in wages to employees on 1/30 for work done in January. i. On January 31, received an electric and gas utility bill for $5,350 for January utility services. The bill will be paid in February.
Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $15. At the start of January 2021, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: Cash Accounts Receivable Supplies Equipment. Buildings Land Accounts Payable Deferred Revenue. Notes Payable (due 2025) Common Stock Retained Earnings. $ 1,500,000 150,000 14,700 874,500 422,000 1,200,000 108,000 73,500 60,000 2,500,000 1,419,700 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: a. Received $50,000 cash from customers on 1/1 for subscriptions that had already been earned and charged on account in 2020. b. 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. c. Paid $10,000 for an Internet advertisement run on 1/3. d. On January 4, purchased and received $3,000 of supplies on account. e. Received $170,000 cash on 1/5 from customers for service revenue earned in January. f. On January 6, paid $3,000 cash for supplies purchased on January 4. g. 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. h. Paid $378,000 in wages to employees on 1/30 for work done in January. i. On January 31, received an electric and gas utility bill for $5,350 for January utility services. The bill will be paid in February.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $15. At
the start of January 2021, VGC's income statement accounts had zero balances and its balance sheet account balances were as
follows:
Cash
Accounts Receivable
Supplies
Equipment
Buildings
Land
Accounts Payable
Deferred Revenue
Notes Payable (due 2025)
Common Stock
Retained Earnings
$ 1,500,000
150,000
14,700
874,500
422,000
1,200,000
108,000
73,500
60,000
2,500,000
1,419,700
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:
a. Received $50,000 cash from customers on 1/1 for subscriptions that had already been earned and charged on account in 2020.
b. 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.
c. Paid $10,000 for an Internet advertisement run on 1/3.
d. On January 4, purchased and received $3,000 of supplies on account.
e. Received $170,000 cash on 1/5 from customers for service revenue earned in January.
f. On January 6, paid $3,000 cash for supplies purchased on January 4.
g. 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.
h. Paid $378,000 in wages to employees on 1/30 for work done in January.
i. On January 31, received an electric and gas utility bill for $5,350 for January utility services. The bill will be paid in February.
Transcribed Image Text:Requirement
General
Journal
General
Ledger
Trial Balance
VANISHING GAMES CORPORATION
Income Statement
For the Month Ended January 31, 2021
Choose the appropriate accounts to be reported on the income statement. However, you will need to calculate and enter the
amount of the net income or loss for the period.
GA
GA
$
Income
Statement
< Trial Balance
0
Stmt of
Retained
Earnings
0
0
0
0
Balance Sheet Analysis
Stmt of Retained Earnings >
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