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C3-1 (Algo) 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] [The following information

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C3-1 (Algo) 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] [The following information applies to the questions displayed below] Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $13. At the start of January 2021, VGC's income statement accounts had zero balances and its balance sheet account bnlances were as follows: In addition to the above accounts, VGC's chart of accounts includes the following: Service Revenue, Salaries and Woges Expense, Advertising Expense, and Utilities Expense. The following transactions occurred during the January month: a. Recelved $71,750 cash from customers on 1/1 for subscriptions that had already been eamed and charged on account in 2020 b. Purchased 10 new computer servers for $40,800 on 12; 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 155 from customers for service revenue earned in January. t. On January 6, poid $4,500 cosh for supplies purchased on January 4. g On January 7 , sold t3,800 subscriptions ot $13 each tor services provided during January Half was collected in cash and half was sold on account. A. Paid $370,000 in wages to employees on 130 for work done in January 6 On January 31 , recelved an electric and gas utlity bill for $5,750 for January utity services. The bill wal be paid in February 6. Prepare a Statement of Retained Earnings for the month ended January 31,2021 , using the beginning balance given above and net income from part 5. Assume VGC has no dividends, but include a line in the statement of retained earnings reporting Dividen of zero

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