Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

journal entry for each line [The following information applies to the questions displayed below.) Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging

image text in transcribed
image text in transcribed
image text in transcribedjournal entry for each line
image text in transcribed
image text in transcribed
image text in transcribed
[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 $12. At the start of January 2018, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: Cash Accounts Receivable Supplies Equipment Buildings Land accounts Payable Deferred Ravenue Notes Payable (due 2025) Common Stock Retained Earnings $1,940,000 183,000 17,200 953,000 498,000 1,940,000 111,000 157,000 152,000 2.700,000 2,411,200 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: remainder owed. a. Received $60,250 cash from customers on 1/1 for subscriptions that had already been eared in 2017 b. Purchased 10 new computer servers for $41,800 on 1/2 paid $19,600 cash and signed a three-year note for the c. Paid $12,400 for an internet advertisement run on 13. d on January 4, purchased and received $5,500 of supplies on account e. Received $200,000 cash on 1/5 from customers for service revenue earned in January Paid $5,500 cash to a supplier on January 6. 9. On January 7, sold 13,000 subscriptions at $12 each for services provided during January. Half was collected in cash and half was sold on account h. Paid $330,000 in wages to employees on 130 for work done in January On January 31, received an electric and gas utility bill for $6.250 for January utility services. The bill will be paid in February Required: 1. Analyze the effect of the January transactions on the accounting equation, and indicate the account amount and direction of the effect of each transaction (Enter any decreases to account balances with a minus sign.) Assets Labilities Stockholders'Equity Cash b. 0 e. 9. Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Sustainability Of Public Sector EntitiesThe Relevance Of Accounting Frameworks

Authors: Josette Caruana, Isabel Brusca, Eugenio Caperchione, Sandra Cohen, Francesca Manes Rossi

1st Edition

3030060365, 9783030060367

More Books

Students also viewed these Accounting questions

Question

Describe the procedures to amend the Constitution.

Answered: 1 week ago

Question

Does mind reading help or hinder communication?

Answered: 1 week ago