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This is what I have so far. I really need help with the Income Statement, Statement of Retained Earnings, Balance Sheet and the Analysis of
This is what I have so far. I really need help with the Income Statement, Statement of Retained Earnings, Balance Sheet and the Analysis of the Net Profit Margin Tab.
Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $13. At the start of January 2021, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: Cash Accounts Receivable Supplies Equipment Buildings Land Accounts Payable Deferred Revenue Notes Payable (due 2025) Common Stock Retained Earnings $ 2,230,000 211,000 16,700 928,000 425,000 1,630,000 134,000 132,000 123,000 2,900,000 2,151,700 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 $71,750 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 $40,800 on 1/2; paid $15,600 cash and signed a three-year note for the remainder owed. c. Paid $15,100 for an Internet advertisement run on 1/3. d. On January 4, purchased and received $4,500 of supplies on account. e. Received $220,000 cash on 1/5 from customers for service revenue earned in January f. On January 6, paid $4,500 cash for supplies purchased on January 4. g. On January 7, sold 13,800 subscriptions at $13 each for services provided during January. Half was collected in cash and half was sold on account. h. Paid $370,000 in wages to employees on 1/30 for work done in January i. On January 31, received an electric and gas utility bill for $5,750 for January utility services. The bill will be paid in February Requirement General Journal General Ledger Trial Balance Income Statement Stmt of Retained Earnings Balance Sheet Analysis General Journal tab - Prepare the journal entries to record the transactions (a) through (i). Review the accounts as shown in the General Ledger and Trial Balance tabs. General Ledger tab - Each journal entry is posted automatically to the general ledger. Trial Balance tab - The ending balance values from the General Ledger tab flows through to the Trial Balance tab. Income Statement tab - Use the drop-down to select the accounts properly included on the income statement. Statement of Retained Earnings tab - Prepare the statement of retained earnings for the month ended January 31, 2021. If there are no dividends, include a line that reports Dividends of zero. Balance Sheet tab - Prepare a classified Balance Sheet at January 31, 2021. Analysis tab - Calculate net profit margin, expressed as a percent. No General Journal Debit Credit Date January 01 1 71,750 Cash Accounts Receivable 71,750 N January 02 40,800 Equipment Cash Notes Payable (long-term) 15,600 25,200 O 3 3 January 03 15,100 Advertising Expense Cash 15,100 4 January 04 4,500 Supplies Accounts Payable >> 4,500 5 January 05 Cash 220,000 >> Service Revenue O 220,000 6 January 06 4,500 Accounts Payable Cash 4,500 7 January 07 Cash 89,700 89,700 Accounts Receivable Service Revenue >>> 179,400 8 January 30 370,000 Salaries and Wages Expense Cash 370,000 9 January 31 5,750 Utilities Expense Accounts Payable 5,750Step by Step Solution
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