Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $10. 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 $ 1,810,000 224,000 23,400 916,000 446,000 1,950,000 120,000 91,000 159,000 2,600,000 2,399,400 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 following transactions occurred during the January month: a. Received $68,500 cash from customers on 1/1 for subscriptions that had already been earned and charged on account in 2020. Show Transcribed Text b. Purchased 10 new computer servers for $30,800 on 1/2; paid $19,900 cash and signed a three-year note for the remainder owed. c. Paid $17,100 for an Internet advertisement run on 1/3. 2 C a. Received $68,500 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 $30,800 on 1/2; paid $19,900 cash and signed a three-year note for the remainder owed. c. Paid $17,100 for an Internet advertisement run on 1/3. d. On January 4, purchased and received $3,350 of supplies on account. e. Received $205,000 cash on 1/5 from customers for service revenue earned in January. f. On January 6, paid $3,350 cash for supplies purchased on January 4. g. On January 7, sold 19,400 subscriptions at $10 each for services provided during January. Half was collected in cash and half was sold on account. h. Paid $360,000 in wages to employees on 1/30 for work done in January. i. On January 31, received an electric and gas utility bill for $6,180 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 $10. 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 $ 1,810,000 224,000 23,400 916,000 446,000 1,950,000 120,000 91,000 159,000 2,600,000 2,399,400 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 following transactions occurred during the January month: a. Received $68,500 cash from customers on 1/1 for subscriptions that had already been earned and charged on account in 2020. Show Transcribed Text b. Purchased 10 new computer servers for $30,800 on 1/2; paid $19,900 cash and signed a three-year note for the remainder owed. c. Paid $17,100 for an Internet advertisement run on 1/3. 2 C a. Received $68,500 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 $30,800 on 1/2; paid $19,900 cash and signed a three-year note for the remainder owed. c. Paid $17,100 for an Internet advertisement run on 1/3. d. On January 4, purchased and received $3,350 of supplies on account. e. Received $205,000 cash on 1/5 from customers for service revenue earned in January. f. On January 6, paid $3,350 cash for supplies purchased on January 4. g. On January 7, sold 19,400 subscriptions at $10 each for services provided during January. Half was collected in cash and half was sold on account. h. Paid $360,000 in wages to employees on 1/30 for work done in January. i. On January 31, received an electric and gas utility bill for $6,180 for January utility services. The bill will be paid in February.
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 33P
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Transcribed Image Text:Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly
subscription of $10. 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
Lam
Accounts Payable
Deferred Revenue
Notes Payable (due 2025)
Common Stock
Retained Earnings
$ 1,810,000
224,000
23,400
916,000
310,000
446,000
050 000
1,950,000
320,000
120,000
91,000
159,000
2,600,000
2,399,400
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 following transactions occurred during the January month:
Show Transcribed Text
a. Received $68,500 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 $30,800 on 1/2; paid $19,900 cash and signed a three-year note for the
remainder owed.
c. Paid $17,100 for an Internet advertisement run on 1/3.
Ĵ
Ć
a. Received $68,500 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 $30,800 on 1/2; paid $19,900 cash and signed a three-year note for the
remainder owed.
c. Paid $17,100 for an Internet advertisement run on 1/3.
d. On January 4, purchased and received $3,350 of supplies on account.
e. Received $205,000 cash on 1/5 from customers for service revenue earned in January.
f. On January 6, paid $3,350 cash for supplies purchased on January 4.
g. On January 7, sold 19,400 subscriptions at $10 each for services provided during January. Half was collected in cash
and half was sold on account.
h. Paid $360,000 in wages to employees on 1/30 for work done in January.
i. On January 31, received an electric and gas utility bill for $6,180 for January utility services. The bill will be paid in
February.
Transcribed Image Text:7. Prepare a classified Balance Sheet at January 31, 2021, using your response to part 6.
VANISHING GAMES CORPORATION
Balance Sheet
At January 31, 2021
Assets
Current Assets
Cash
Accounts Receivable
Supplies
Total Current Assets
Equipment
Show Transcribed Text
Equipment
Land
Buildings
Total Assets
Current Liabilities
Accounts Payable
Deferred Revenue
Total Current Liabilities
Notes Payable (long-term)
Total Liabilities
Common Stock
Retained Earnings
Liabilities
0
Stockholders' Equity
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
$
$
0
0
0
0
0
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