Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $15. At the start of January 2021, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: Cash 5 3,220,000 Account Receivable 225,000 upplies 20,600 Equipment 910,000 Buildings 479,000 Land 1,770,000 Accounts Payable 117.000 Deferred Revenue 109.000 Notes Payable (due 2025) 132,000 Common stock 2.500.000 Retained Earning 2,725,600 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 $51,250 cash from customers on 11 for subscriptions that had already been earned and charged on account in 2020. 6. Purchased 10 new computer servers for $38,800 on 12; pald $18,000 cash and signed a three-year note for the remainder owed. Pald $18,400 for on Internet advertisement run on 13. d on January 4, purchased and received $3,800 of supplies on account e. Received $200,000 cash on 15 from customers for service revenue eamed in January Pald $3,800 cash to a supplier on January 6. 9. On January 7, sold 10,300 subscriptions at $15 each for services provided during January. Half was collected in cash and half was sold on account h. Paid $320,000 in wages to employees on 1/30 for work done in January On January 31, received an electric and gas utility bill for $6,070 for January utility services. The bill will be paid in February x actorio.com/secured lockdown Ped Lp ted: Project one (Ch 13) Help Sovet anu na was so on account Pald $320,000 in wages to employees on 1/30 for work done in January On January 31. received an electric and gas utility bill for $6,070 for January Utility services. The bill will be paid in February Required: 4. 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 Assets, Liabilities, and Stockholder's Equity with a minus sign.) Assets Lab Cash b c d 0 9 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 $15. At the start of January 2021, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: Cash 5 3,220,000 Account Receivable 225,000 upplies 20,600 Equipment 910,000 Buildings 479,000 Land 1,770,000 Accounts Payable 117.000 Deferred Revenue 109.000 Notes Payable (due 2025) 132,000 Common stock 2.500.000 Retained Earning 2,725,600 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 $51,250 cash from customers on 11 for subscriptions that had already been earned and charged on account in 2020. 6. Purchased 10 new computer servers for $38,800 on 12; pald $18,000 cash and signed a three-year note for the remainder owed. Pald $18,400 for on Internet advertisement run on 13. d on January 4, purchased and received $3,800 of supplies on account e. Received $200,000 cash on 15 from customers for service revenue eamed in January Pald $3,800 cash to a supplier on January 6. 9. On January 7, sold 10,300 subscriptions at $15 each for services provided during January. Half was collected in cash and half was sold on account h. Paid $320,000 in wages to employees on 1/30 for work done in January On January 31, received an electric and gas utility bill for $6,070 for January utility services. The bill will be paid in February x actorio.com/secured lockdown Ped Lp ted: Project one (Ch 13) Help Sovet anu na was so on account Pald $320,000 in wages to employees on 1/30 for work done in January On January 31. received an electric and gas utility bill for $6,070 for January Utility services. The bill will be paid in February Required: 4. 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 Assets, Liabilities, and Stockholder's Equity with a minus sign.) Assets Lab Cash b c d 0 9

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Fundamental accounting principle

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

21st edition

1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587

Students also viewed these Accounting questions