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:Received $50,000 cash from customers on 1/1 for subscriptions that had already been earned in 2017.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.Paid $10,000 for an Internet advertisement run on 1/3.On January 4, purchased and received $3,000 of supplies on account.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.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.Paid $378,000 in wages to employees on 1/30 for work done in January.On January 31, received an electric and gas utility bill for $5,350 for January utility services. The bill will be paid in February.Record the transaction for each action.

Date Account titles and explanation Debit ($) Credit ($) 1-Jan Cash $50,000 Accounts…

Answered: In addition to the above accounts,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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:

Received $50,000 cash from customers on 1/1 for subscriptions that had already been earned in 2017.
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.
Paid $10,000 for an Internet advertisement run on 1/3.
On January 4, purchased and received $3,000 of supplies on account.
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.
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.
Paid $378,000 in wages to employees on 1/30 for work done in January.
On January 31, received an electric and gas utility bill for $5,350 for January utility services. The bill will be paid in February.

Record the transaction for each action.

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