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 $14. At the start of January 2018, VGC's income

image text in transcribedimage text in transcribed

image text in transcribed

Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $14. 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 $2,410,000 218,000 17,700 950,000 440,000 1,620,000 150,000 145,000 65,000 2,400,000 2,895,700 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 $54,500 cash from customers on 1/1 for subscriptions that had already been earned in 2017. b. Purchased 10 new computer servers for $42,000 on 12; paid $19,200 cash and signed a three-year note for the remainder owed. c. Paid $16,800 for an Internet advertisement run on 1/3. d. On January 4, purchased and received $4,600 of supplies on account. e. Received $195,000 cash on 1/5 from customers for service revenue earned in January. f. Paid $4,600 cash to a supplier on January 6. 9. On January 7, sold 14,400 subscriptions at $14 each for services provided during January. Half was collected in cash and half was sold on account n. Paid $371,000 in wages to employees on 1/30 for work done in January i. On January 31, received an electric and gas utility bill for $6,170 for January utility services. The bill will be paid in February. VANISHING GAMES CORPORATION Balance Sheet At January 31, 2018 Assets Current Assets $ 0 0 0 Total Current Assets 0 0 0 Total Assets Liabilities Current Liabilities 0 0 0 Total Current Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity Balance Sheet Analysis General General Income Stmt of Requirement Trial Balance Journal Statement Retained Ledger Earnings Calculate net profit margin, expressed as a percent. (Round your answer to 1 decimal place.) Net Profit Margin %

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 Cases An Interactive Learning Approach

Authors: Steven M Glover, Douglas F Prawitt

4th Edition

0132423502, 978-0132423502

More Books

Students also viewed these Accounting questions