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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 $12. At 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, Salarles and Wages
Expense, Advertising Expense, and Utilities Expense. The following transactions occurred during the January month:
a. Recelved $65,250 cash from customers on 11 for subscriptions that had already been earned and charged on account
In 2020.
b. Purchased 10 new computer servers for $34,600 on 12; pald $14,400 cash and signed a three-year note for the
remainder owed.
c. Pald $12,600 for an Internet advertisement that ran today on 13.
d. On January 4, purchased and recelved $3,300 of supplies on account.
e. Recelved $215,000 cash on 15 from customers for service revenue earned but not previously recorded in January.
f. On January 6, paid $3,300 cash for supplies purchased on January 4.
g. On January 7, sold 19,200 subscriptions at $12 each for services provided during January. Half was collected in cash
and half was sold on account.
h. Pald $420,000 in wages to employees on 130 for work done in January.
On January 31, recelved an electric and gas utility bill for $5,250 for January utility services. The bill will be paid in
February.
Calculate net profit margin, expressed as a percent. (Round your answer to 1 decimal place.)
Answer is complete but not entirely correct.
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