Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $10. At the start of January 2018, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: $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 Cash Accounts Receivable Supplies Equipment Buildings Land Accounts Payable Deferred Revenue Notes Payable (due 2025) Common Stock Retained Earnings 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 $68,500 cash from customers on 1/1 for subscriptions that had already been earned in 2017. 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. Paid $3,350 cash to a supplier on January 6. 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 2018, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: $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 Cash Accounts Receivable Supplies Equipment Buildings Land Accounts Payable Deferred Revenue Notes Payable (due 2025) Common Stock Retained Earnings 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 $68,500 cash from customers on 1/1 for subscriptions that had already been earned in 2017. 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. Paid $3,350 cash to a supplier on January 6. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
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 2018, VGC's income statement accounts had zero balances and its balance sheet account balances were as
follows:
$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
Cash
Accounts Receivable
Supplies
Equipment
Buildings
Land
Accounts Payable
Deferred Revenue
Notes Payable (due 2025)
Common Stock
Retained Earnings
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 $68,500 cash from customers on 1/1 for subscriptions that had already been earned in 2017.
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. Paid $3,350 cash to a supplier on January 6.
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.
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 with 2 images
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education