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Required Information [ The following information applles to the questions displayed below. ] Vanishing Games Corporation ( VGC ) operates a massively multiplayer online game,
Required Information
The following information applles to the questions displayed below.
Vanishing Games Corporation VGC operates a massively multiplayer online game, charging players a monthly
subscription of $ At the start of January VGCs income statement accounts had zero balances and Its balance
sheet account balances were as follows:
In addition to the above accounts, VGCs chart of accounts includes the following: Service Revenue, Salarles and Wages
Expense, Advertising Expense, and Utilltes Expense. The following transactions occurred during the January month:
a Recelved $ cash from customers on for subscriptions that had already been earned and charged on account
In
b Purchased new computer servers for $ on ; pald $ cash and signed a threeyear note for the
remalnder owed.
c Pald $ for an Internet advertisement that ran today on
d On January purchased and recelved $ of supplles on account.
e Recelved $ cash on from customers for service revenue earned but not previously recorded in January.
f On January pald $ cash for supplles purchased on January
g On January sold subscriptions at $ each for services provided during January. Half was collected in cash
and half was sold on account.
h Pald $ in wages to employees on for work done in January.
On January recelved an electric and gas utillty bill for $ for January utllity services. The bill will be pald in
February.
Enter the beginning balances shown above in the following accounts and post the journal entrles.
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