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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 alsployed below.] Vanisthing 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 balances were as foliows: In addition to the above accounts, VGC's chart of accounts includes the following: Service Rovenue, Solaries and Woges Expense, Advertising Expense, and Utilities Expense. The following transoctions occutred during the January month? a. Received $71,750 cash from customers on Wt 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. Poid $15,100 for an tnternet advertisement run on 1/3. d. On January 4. purchased and recelved $4,500 of supplies on account. e. Becelved $220,000 cash on 15 from customers for service revenue earned in January. f On January 6 , paid $4,500 cash for supplies purchased on January 4 9. On January 7 , sold 13,800 subscriptions at $13 each for services provided during Jonuary, Haif 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. r. On january 31 , recelived an electric and 9a5 utility bill for $5,750 for Januayy utility seevices. The bill will be paid in febrisary: 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. 7. Prepare a classified Balance Sheet at January 31,2021 , using your response to part 6

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