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Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $11. At the start of January 2021, VGC's income
Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $11. At the start of January 2021, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: In addition to the above accounts, VGC's chart of accounts includes the following: Service Revenue, Salaries and Wages Expense. Advertising Expense, and Utiltiles Expense. The January transactions are shown below: a. Received $62,250 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 $34,200 on 1/2; paid $15,300 cash and signed a three-year note for the remainder owed. c. Poid $19,400 for an internet advertisement run on 1/3. d. On January 4 , purchased and recelved $3,400 of supplies on account. e. Received $180,000 cash on 1/5 from customers for service revenue earned in January. t On January 6 , paid $3,400 cash for supplies purchased on January 4 . 9. On January 7. sold 16,300 subseriptions at \$11 each for services provided during January. Half was collected in cash and half was. sold on account. h. Paid $326,000 in wages to employees on 1/30 for work done in January. 1. On January 31, received an electric and gas utility bill for $5,670 for January utality services. The bill will be paid in Februarv. General Journal tab - Prepare the journal entries to record the transactions (a) through (l). 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
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