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Requirea information [The following information applies to the questions displayed below.) Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a
Requirea information [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 $10. At the start of January 2021, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: ces Cash Accounts Receivable Supplies Equipment Buildings Land Accounts Payable Deferred Revenue Notes Payable (due 2025) Common Stock Retained Earnings $ 2,060,000 202,000 *19,200 905,000 518,000 1,100,000 143,000 110,000 69,000 2,000,000 2,482,200 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: a. Received $65,000 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 $37,900 on 1/2; paid $13,300 cash and signed a three-year note for the remainder owed. c. Paid $17,400 for an Internet advertisement run on 1/3. d. On January 4, purchased and received $3,200 of supplies on account. e. Received $175,000 cash on 1/5 from customers for service revenue earned in January. f. On January 6, paid $3,200 cash for supplies purchased on January 4. g. On January 7, sold 18,700 subscriptions at $10 each for services provided during January. Half was collected in cash and half was sold on account. h. Paid $325,000 in wages to employees on 1/30 for work done in January.. i. On January 31, received an electric and gas utility bill for $5,700 for January utility services. The bill will be paid in February C
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