1)
2) Prepare journal entries for the January transactions.
A)Record the $62,250 cash from customers on 1/1 for subscriptions that had already been earned and charged on account in 2020.
B) Record the purchase of 10 new computer servers for $34,200 on 1/2; paid $15,300 cash and signed a three-year note for the remainder owed.
C) Record the payment of $19,400 for an Internet advertisement run on 1/3.
D )Record the purchases of $3,400 of supplies on account.
E) Record the receipt of $180,000 cash on 1/5 from customers for service revenue earned in January.
F) Record the payment of $3,400 cash to a supplier on January 6.
G) Record the sale of 16,300 subscriptions at $11 each for services provided during January for which 50% collected in cash and balance on account.
H) Record the payment of $326,000 in wages to employees on 1/30 for work done in January.
I) Record the electric and gas utility bill for $5,670 for January utility services to be paid in February.
3) Prepare an unadjusted trial balance as of January 31, 2021.
Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of \$11. At the start of January 2021, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: 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 $62,250 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 $34,200 on 1/2; paid $15,300 cash and signed a three-year note for the remainder owed. c. Paid $19,400 for an Internet advertisement run on 1/3. d. On January 4 , purchased and received $3,400 of supplies on account. e. Received $180,000 cash on 1/5 from customers for service revenue earned in January. f. On January 6 , paid $3,400 cash for supplies purchased on January 4. g. On January 7 , sold 16,300 subscriptions at $11 each for services provided during January. Half was collected in cash and half was sold on account. h. Paid $326,000 in wages to employees on 1/30 for work done in January. i. On January 31, received an electric and gas utility bill for $5,670 for January utility services. The bill will be paid in February. 1. Analyze the effect of the January transactions on the accounting equation, and indicate the account, amount, and direction of the effect of each transaction. (Enter any decreases to Assets, Liabilities, and Stockholder's Equity with a minus sign.) \begin{tabular}{|c|c|c|c|} \hline Transaction & General Journal & Debit & Credit \\ \hline i & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} VANISHING GAMES CORPORATION \begin{tabular}{ll|l||} \multicolumn{1}{c|}{ Unadjusted Trial Balance } \\ \hline Account Name & Debit \\ \hline Cash & & \\ \hline Accounts Receivable & & \\ \hline Supplies & & \\ \hline Equipment & & \\ \hline Buildings & & \\ \hline Land & & \\ \hline Accounts Payable & & \\ \hline Deferred Revenue & & \\ \hline Notes Payable (long-term) Expense & \\ \hline Common Stock & & \\ \hline Retained Earnings & & \\ \hline Service Revenue & & \\ \hline Salaries and Wages Expense & & \\ \hline \end{tabular} Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of \$11. At the start of January 2021, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: 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 $62,250 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 $34,200 on 1/2; paid $15,300 cash and signed a three-year note for the remainder owed. c. Paid $19,400 for an Internet advertisement run on 1/3. d. On January 4 , purchased and received $3,400 of supplies on account. e. Received $180,000 cash on 1/5 from customers for service revenue earned in January. f. On January 6 , paid $3,400 cash for supplies purchased on January 4. g. On January 7 , sold 16,300 subscriptions at $11 each for services provided during January. Half was collected in cash and half was sold on account. h. Paid $326,000 in wages to employees on 1/30 for work done in January. i. On January 31, received an electric and gas utility bill for $5,670 for January utility services. The bill will be paid in February. 1. Analyze the effect of the January transactions on the accounting equation, and indicate the account, amount, and direction of the effect of each transaction. (Enter any decreases to Assets, Liabilities, and Stockholder's Equity with a minus sign.) \begin{tabular}{|c|c|c|c|} \hline Transaction & General Journal & Debit & Credit \\ \hline i & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} VANISHING GAMES CORPORATION \begin{tabular}{ll|l||} \multicolumn{1}{c|}{ Unadjusted Trial Balance } \\ \hline Account Name & Debit \\ \hline Cash & & \\ \hline Accounts Receivable & & \\ \hline Supplies & & \\ \hline Equipment & & \\ \hline Buildings & & \\ \hline Land & & \\ \hline Accounts Payable & & \\ \hline Deferred Revenue & & \\ \hline Notes Payable (long-term) Expense & \\ \hline Common Stock & & \\ \hline Retained Earnings & & \\ \hline Service Revenue & & \\ \hline Salaries and Wages Expense & & \\ \hline \end{tabular}
