Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $15. At the start of January 2021, VGCs income statement accounts had zero balances and its balance sheet account balances were as follows:
| Cash | $ 1,830,000 |
| Accounts Receivable | 242,000 |
| Supplies | 23,100 |
| Equipment | 969,000 |
| Buildings | 451,000 |
| Land | 1,970,000 |
| Accounts Payable | 199,000 |
| Deferred Revenue | 112,000 |
| Notes Payable (due 2025) | 141,000 |
| Common Stock | 2,100,000 |
| Retained Earnings | 2,933,100 |
In addition to the above accounts, VGCs 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 $63,000 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 $36,000 on 1/2; paid $19,300 cash and signed a three-year note for the remainder owed.
c. Paid $19,300 for an Internet advertisement run on 1/3.
d. On January 4, purchased and received $5,450 of supplies on account.
e. Received $230,000 cash on 1/5 from customers for service revenue earned in January.
f. On January 6, paid $5,450 cash for supplies purchased on January 4.
g. On January 7, sold 13,400 subscriptions at $15 each for services provided during January. Half was collected in cash and half was sold on account.
h. Paid $400,000 in wages to employees on 1/30 for work done in January.
i. On January 31, received an electric and gas utility bill for $6,100 for January utility services. The bill will be paid in February.
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.
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. Journal entry worksheet Received $67,250 cash from customers on 1/1 for subscriptions that had already been earned and charged on account in 2020. Record the transaction. Note: Enter debits before credits. General Ledger Account \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Cash } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 1,720,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accounts Receivable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 230,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Supplies } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 21,800 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Land } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 2,100,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{c|}{ Buildings } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 485,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Equipment } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 892,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accounts Payable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 180,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Deferred Revenue } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 119,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Notes Payable (long-term) } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 128,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \multicolumn{5}{|c|}{ Common Stock } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 3,000,000 \\ \hline \end{tabular} Retained Earnings \begin{tabular}{|c|c|c|c|c|} \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 2,021,800 \\ \hline \end{tabular} The ending balance values from the General Ledger tab flows through to the Trial Balance below. VANISHING GAMES CORPORATION Trial Balance January 31,2021 Choose the appropriate accounts to be reported on the income statement. However, you will need to calculate and enter the amount of the net income or loss for the period. Prepare the statement of retained earnings for the month ended January 31,2018 . You will need to determine and enter the accounts and balances to prepare the Statement of Retained Earnings. If there are no dividends, include a line that reports Dividends of zero. Use the dropdowns to select the accounts properly included on the classified balance sheet. You will need to determine and enter the halance of the Common. Stock and Retained Farnings accounts in the Stockholders' Equity section. Calculate net profit margin, expressed as a percent. (Round your answer to 1 decimal place.) Net Profit Margin % 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. Journal entry worksheet Received $67,250 cash from customers on 1/1 for subscriptions that had already been earned and charged on account in 2020. Record the transaction. Note: Enter debits before credits. General Ledger Account \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Cash } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 1,720,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accounts Receivable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 230,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Supplies } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 21,800 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Land } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 2,100,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{c|}{ Buildings } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 485,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Equipment } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 892,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Accounts Payable } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 180,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Deferred Revenue } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 119,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Notes Payable (long-term) } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 128,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \multicolumn{5}{|c|}{ Common Stock } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 3,000,000 \\ \hline \end{tabular} Retained Earnings \begin{tabular}{|c|c|c|c|c|} \hline No. & Date & Debit & Credit & Balance \\ \hline & January 01 & & & 2,021,800 \\ \hline \end{tabular} The ending balance values from the General Ledger tab flows through to the Trial Balance below. VANISHING GAMES CORPORATION Trial Balance January 31,2021 Choose the appropriate accounts to be reported on the income statement. However, you will need to calculate and enter the amount of the net income or loss for the period. Prepare the statement of retained earnings for the month ended January 31,2018 . You will need to determine and enter the accounts and balances to prepare the Statement of Retained Earnings. If there are no dividends, include a line that reports Dividends of zero. Use the dropdowns to select the accounts properly included on the classified balance sheet. You will need to determine and enter the halance of the Common. Stock and Retained Farnings accounts in the Stockholders' Equity section. Calculate net profit margin, expressed as a percent. (Round your answer to 1 decimal place.) Net Profit Margin %
