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please help. I have no Idea where I went wrong. Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription
please help. I have no Idea where I went wrong.
Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $12. A the start of January 2021, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: 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 January transactions are shown below: a. Received $60,250 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 $41,800 on 1/2; paid $19,600 cash and signed a three-year note for the remainder owed. c. Paid $12,400 for an Internet advertisement run on 1/3. 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. f. On January 6 , paid $5,500 cash for supplies purchased on January 4 . g. 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 1/30 for work done in January. i. On January 31 , received an electric and gas utility bill for $6,250 for January utility services. The bill will be paid in February. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ VANISHING GAMES CORPORATION } \\ \hline \multicolumn{3}{|c|}{ Balance Sheet } \\ \hline \multicolumn{3}{|c|}{ At January 31,2021} \\ \hline \multicolumn{3}{|l|}{ Assets } \\ \hline \multicolumn{3}{|l|}{ Current Assets } \\ \hline Cash & A$ & 1,910,750 \\ \hline Supplies & & 22,700 \\ \hline Accounts Receivable & & 200,750 \\ \hline Total Current Assets & & 2,134,200 \\ \hline Equipment & & 994,800 \\ \hline Land & & 1,940,000 \\ \hline & & 0 \\ \hline Total Assets & $ & 5,069,000 \\ \hline \multicolumn{3}{|l|}{ Liabilities } \\ \hline \multicolumn{3}{|l|}{ Current Liabilities } \\ \hline Accounts Payable & A$ & 117,250 \\ \hline Salaries and Wages Expense & & 330,000 \\ \hline Total Current Liabilities & & 447,250 \\ \hline Notes Payable (long-term) & & 174,200 \\ \hline Total Liabilities & $ & 621,450 \\ \hline \multicolumn{3}{|c|}{ Stockholders' Equity } \\ \hline Common Stock & & 2,700,000 \\ \hline Retained Earnings & & 2,418,550 \\ \hline & & 5,118,550 \\ \hline Total Liabilities and Stockholders' Equity & $ & 5,740,000 \\ \hline \end{tabular}Step by Step Solution
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