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]

[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 2015, VGCs income statement accounts had zero balances and its balance sheet account balances were as follows:

Cash	$	2,230,000
Accounts Receivable		211,000
Supplies		16,700
Equipment		928,000
Land		1,630,000
Building		425,000
Accounts Payable		134,000
Unearned Revenue		132,000
Notes Payable (due 2018)		123,000
Common Stock		2,900,000
Retained Earnings		2,151,700

In addition to the above accounts, VGCs chart of accounts includes the following: Service Revenue, Salaries and Wages Expense, Advertising Expense, and Utilities Expense.

[3. Create T-accounts, enter the beginning balances shown above, post the journal entries to the T-accounts, and show the unadjusted ending balances in the T-accounts.]

***EDIT*** HERE ARE THE TRANSACTIONS...

1.

Record the receipt of $71,750 cash from customers for subscriptions that had already been earned in 2014.

2.

Record the receipt of $220,000 cash from Electronic Arts, Inc. for service earned in the month of January.

3.

Record the purchase of 10 new computer servers for $40,800; paid $15,600 as cash and signed a three year note for the remainder owed.

4.

Record the payment of $15,100 for an Internet advertisement run on Yahoo! in January.

5.

Record the sale of 13,800 monthly subscriptions at $13 each for services provided during January. Half was collected in cash and half was sold on account.

6.

Record the receipt of an electric and gas utility bill for $5,750 for January utility services. The bill will be paid in February.

7.

Record the payment of $370,000 in wages to employees for work done in January.

8.

Record the purchase $4,500 of supplies on account.

9.

Record the payment of $4,500 cash to the supplier in (h).