Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 Accounts Receivable Supplies Equipment Buildings Land Accounts Payable Deferred Revenue Notes Payable (due 2025) Common Stock Retained Earnings $1,500,000 150,000 14,700 874,500 422,000 1,200,000 108,000 73,500 69,000 2,500.000 1,419,700 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: The January transactions are shown below a Received $50,000 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 $33,500 on 1/2 paid $10,000 cash and signed a three-year note for the remainder owed. c Paid $10,000 for an Internet advertisement run on 1/3 d. On January 4, purchased and received $3,000 of supplies on account e Received $170.000 cash on 1/5 from customers for service revenue earned in January Paid $3,000 cash to a supplier on January 6. g. On January 7, sold 15.000 subscriptions at $15 each for services provided during January. Half was collected in cash and half was sold on account h. Paid $378.000 in wages to employees on 1/30 for work done in January 1 on January 31, received an electric and gts utility bill for $5,350 for January utility services. The bill will be paid in February LIRIL VI Requirement General Journal General Ledger Trial Balance Income Statement Retained Earnings Choose the appropriate accounts to be reported on the income statement. Howeve amount of the net income or loss for the period. VANISHING GAMES CORPORATION Income Statement For the Month Ended January 31, 2021 $ 0 + EA 0 0 0 0 Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Auditing and Assurance Services An Applied Approach

Authors: Iris Stuart

1st edition

73404004, 978-0073404004

Students also viewed these Accounting questions

Question

Outline several possible topics for a general company orientation.

Answered: 1 week ago