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Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $10. At the start of January 2018, VGC's income

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Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $10. At the start of January 2018, 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 $2,060,000 202,000 19,200 905,000 518,000 1,100,000 143,000 110,000 69,000 2,000,000 2.482,200 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 $65,000 cash from customers on 11 for subscriptions that had already been earned in 2017. b. Purchased 10 new computer servers for $37,900 on 1/2; pald $13,300 cash and signed a three-year note for the remainder owed. c. Paid $17,400 for an Internet advertisement run on 1/3 d. On January 4, purchased and received $3,200 of supples on account. e. Received $175,000 cash on 1/5 from customers for service revenue eamed in January 1 Paid $3,200 cash to a supplier on January 6. 9. On January 7, sold 18,700 subscriptions at $10 each for services provided during January, Half was collected in cash and half was h. Paid $325,000 in wages to employees on 130 for work done in January 1. On January 31, received an electric and gas utility bill for $5,700 for January utility services. The bill will be paid in February sold on account L. Puicide I w Lupule server TUI 33,9UU UH 112, OU D13 SUV sildid Signu deydi HUL TULI Uweu. c. Paid $17,400 for an Internet advertisement run on 1/3. d. On January 4, purchased and received $3,200 of supplies on account e. Received $175,000 cash on 1/5 from customers for service revenue earned in January, f. Paid $3,200 cash to a supplier on January 6. 9. On January 7, sold 18,700 subscriptions at $10 each for services provided during January, Half was collected in cash and half was sold on account h. Paid $325,000 in wages to employees on 130 for work done in January V. On January 31, received an electric and gas utility bill for $5.700 for January utility services. The bill will be paid in February General General Stmt of Requirement Trial Balance Income Ledger Journal Statement Retained Balance Sheet Analysis Earnings General Journal tab. Prepare the journal entries to record the transactions (a) through (1). 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, 2018. Balance Sheet tab - Prepare a classified Balance Sheet at January 31, 2018. Analysis tab - Calculate net profit margin, expressed as a percent. General Journal > General General Income Stmt of Requirement Journal Trial Balance Ledger Statement Retained Balance Sheet Analysis Earnings Prepare the journal entries to record the transactions (a) through (1). (If no entry is required for a transaction/event, select "No Soumal entry required in the first account field.) View transaction list Journal entry worksheet General Requirement General Sumt of Income Journal Trial Balance Ledger Statement Retained Balance Sheet Analysis Earnings 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. VANISHING GAMES CORPORATION Income Statement For the Month Ended January 31, 2018 d. On January 4, purchased and received $3,200 of supplies on account. e. Received $175,000 cash on 15 from customers for service revenue earned in January f. Pald $3,200 cash to a supplier on January 6. g. On January 7, sold 18,700 subscriptions at $10 each for services provided during January, Half was collected in cash and half sold on account h. Paid $325,000 in wages to employees on V30 for work done in January 1. On January 31, received an electric and gas utility bill for $5,700 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 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 Eamings. VANISHING GAMES CORPORATION Statement of Retained Earnings For the Month Ended January 31, 2018 Retained Earnings, January 1, 2018 Retained Earnings, January 31, 2018

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