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answer questions entirely Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $11. At the start of January
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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: Cash $ 1,620,000 Accounts Receivable 236,000 15,700 Supplies Equipment 909,000 441,000 Buildings Land 1,830,000 203,000 Accounts Payable Deferred Revenue Notes Payable (due 2025) 150,000 97,000 2,300,000 2,301,700 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 following transactions occurred during the January month: a. Received $55,750 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 $35,400 on 1/2; paid $14,300 cash and signed a three-year note for the remainder owed. c. Paid $11,000 for an Internet advertisement run on 1/3. d. On January 4, purchased and received $3,600 of supplies on account. e. Received $240,000 cash on 1/5 from customers for service revenue earned in January. On January 6, paid $3,600 cash for supplies purchased on January 4. g. On January 7, sold 11,200 subscriptions at $11 each for services provided during January, Half was collected in cash and half was sold on account. h. Paid $340,000 in wages to employees on 1/30 for work done in January. On January 31, received an electric and gas utility bill for $5,570 for January utility services. The bill will be paid in February. 2. Prepare journal entries for the January transactions. (If no entry is required for a transaction/event, select "No Journal Em Required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 5 6 7 8 9 Record the $55,750 cash from customers on 1/1 for subscriptions that had already been earned and charged on account in 2020. Note: Enter debits before credits. Transaction General Journal Debit Credit a Record entry Clear entry View general Journal Journal entry worksheet Journal entry worksheet Journal entry worksheet Step by Step Solution
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