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5 Required information C3-1 Analyzing, Recording, and Posting, and Preparing and Evaluating Financial Statements (Chapters 1 3) [LO 3-2, LO 3-3, LO 3-4, LO 3-5)

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5 Required information C3-1 Analyzing, Recording, and Posting, and Preparing and Evaluating Financial Statements (Chapters 1 3) [LO 3-2, LO 3-3, LO 3-4, LO 3-5) Part 5 of 8 (The following information applies to the questions displayed below 1.25 points Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $13. At the start of January 2018, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: eBook Cash $2, 230, 000 211, 000 16, 700 928, 000 425,000 1,630, 000 134, 000 132,000 123,000 2,900, 000 2, 151, 700 Accounts Receivable Supplies Equipment Buildings Land Print Accounts Payable Deferred Revenue Notes Payable (due 2025) Common Stock Retained Earnings References 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 $71,750 cash from customers on 1/1 for subscriptions that had already been earned in 2017 b. Purchased 10 new computer servers for $40,800 on 1/2; paid $15,600 cash and signed a three-year note for the remainder owed. c Paid $15,100 for an Internet advertisement run on 1/3. d. On January 4, purchased and received $4,500 of supplies on account e. Received $220,000 cash on 1/5 from customers for service revenue earned in January f Paid $4,500 cash to a supplier on January 6. g. On January 7, sold 13,800 subscriptions at $13 each for services provided during January. Half was collected in cash and half was sold on account h Paid $370,000 in wages to employees on 1/30 for work done in January LOn January 31, received an electric and gas utility bill for $5,750 for January utility services. The bill will be paid in February. Next> of 8 5 6 7 Mc Graw Hill

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