Required information [The following information applies to the questions displayed below) Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $14. At the start of January 2021, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: $ 2,888,889 175,08e 20,100 967,00e 445,800 Cash Accounts Receivable Supplies Equipment Buildings Land Accounts Payable Deferred Revenue 1,59e,e0e 206,88e Notes Payable (due 2825) Common Stock Retained Earnings 118,0ee 68,88e 2,68e,80e 2,285,189 In addition to the above accounts, VGC's chart of accounts Includes the followng: Service Revenue, Salaries and Wages Expense, Advertising Expense, and Utilites Expense. The following transactions occurred during the January month: a. Recelved $56,500 cash from customers on 1/1 for subscriptions that had already been eamed and charged on account In 2020. b. Purchased 10 new computer servers for $35.200 on 1/2: pald $12.800 cash and signed a three-year note for the remalnder owed. c. Paid $15.000 for an Internet advertisement run on 13. d. On January 4. purchased and recelved $4.800 of supplies on account e. Recelved $155.000 cash on 15 from customers for service revenue earned Iin January. £ On January 6. pald $4,800 cash for supplies purchased on January 4. g. On January 7, sold 15,700 subscriptions at $14 each for services provided during January. Half was collected in cash and half was sold on account. h. Paid $350,000 in wages to employees on 130 for work done in January. LOn January 31, recelved an electric and gas utility bill for $6.350 for January utility services. The bill will be pald in February. quired: analyze the effect of the January transactions on the accounting equation, and Indicate the account, amount, and direction of the ffect of each transaction. (Enter any decreases to Assets, Liabilities, and Stockholder's Equlty with a minus sign.)
Required information [The following information applies to the questions displayed below) Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $14. At the start of January 2021, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: $ 2,888,889 175,08e 20,100 967,00e 445,800 Cash Accounts Receivable Supplies Equipment Buildings Land Accounts Payable Deferred Revenue 1,59e,e0e 206,88e Notes Payable (due 2825) Common Stock Retained Earnings 118,0ee 68,88e 2,68e,80e 2,285,189 In addition to the above accounts, VGC's chart of accounts Includes the followng: Service Revenue, Salaries and Wages Expense, Advertising Expense, and Utilites Expense. The following transactions occurred during the January month: a. Recelved $56,500 cash from customers on 1/1 for subscriptions that had already been eamed and charged on account In 2020. b. Purchased 10 new computer servers for $35.200 on 1/2: pald $12.800 cash and signed a three-year note for the remalnder owed. c. Paid $15.000 for an Internet advertisement run on 13. d. On January 4. purchased and recelved $4.800 of supplies on account e. Recelved $155.000 cash on 15 from customers for service revenue earned Iin January. £ On January 6. pald $4,800 cash for supplies purchased on January 4. g. On January 7, sold 15,700 subscriptions at $14 each for services provided during January. Half was collected in cash and half was sold on account. h. Paid $350,000 in wages to employees on 130 for work done in January. LOn January 31, recelved an electric and gas utility bill for $6.350 for January utility services. The bill will be pald in February. quired: analyze the effect of the January transactions on the accounting equation, and Indicate the account, amount, and direction of the ffect of each transaction. (Enter any decreases to Assets, Liabilities, and Stockholder's Equlty with a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required Information
[The following information applies to the questions dlisplayed below.]
Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly
subscription of $14. At the start of January 2021, VGC's Income statement accounts had zero balances and Its balance
sheet account balances were as follows:
$ 2,880,889
175,000
20,100
Cash
Accounts Receivable
Supplies
Equipment
Buildings
967,000
445,000
1,59e,000
206,800
118,000
68,000
2,600, 809
2,285,189
Land
Accounts Payable
Deferred Revenue
Notes Payable (due 2025)
Connon Stock
Retained Earnings
In addition to the above accounts. VGC's chart of accounts Includes the following: Service Revenue, Salarles and Wages
Expense, Advertising Expense, and Utilitles Expense. The following transactions occurred during the January month:
a. Recelved $56,500 cash from customers on 11 for subscriptions that had already been eamed and charged on account
In 2020.
b. Purchased 10 new computer servers for $35,200 on 1/2; pald $12.,800 cash and signed a three-year note for the
remalnder owed.
c. Paid $15,000 for an Internet advertisement run on 1/3.
d. On January 4. purchased and recelved $4,800 of supplies on account.
e. Recelved $155.000 cash on 1/5 from customers for service revenue earned in January.
f On January 6. pald $4,800 cash for supplies purchased on January 4.
g. On January 7, sold 15,700 subscriptions at $14 each for services provided during January. Half was collected in cash
and half was sold on account.
h. Pald $350,000 In wages to employees on 1/30 for work done In January.
1. On January 31, recelved an electric and gas utlity bill for $6.350 for January utility services. The bill will be pald in
February.
Required:
1. Analyze the effect of the January transactions on the accounting equation, and Indicate the account, amount, and direction of the
effect of each transaction. (Enter any decreases to Assets, Liabilitles, and Stockholder's Equity with a minus sign.)
Assets
Liabilities
Stockholders' Equity
a.
a.
b.
b.
C.
d.
e.
f.
9.
9-
h.
i](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4959d4f7-c515-4b84-8a14-00389cef5562%2Fe5909c31-5183-46a4-b8a3-a6479bf9744f%2F648x2z_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions dlisplayed below.]
Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly
subscription of $14. At the start of January 2021, VGC's Income statement accounts had zero balances and Its balance
sheet account balances were as follows:
$ 2,880,889
175,000
20,100
Cash
Accounts Receivable
Supplies
Equipment
Buildings
967,000
445,000
1,59e,000
206,800
118,000
68,000
2,600, 809
2,285,189
Land
Accounts Payable
Deferred Revenue
Notes Payable (due 2025)
Connon Stock
Retained Earnings
In addition to the above accounts. VGC's chart of accounts Includes the following: Service Revenue, Salarles and Wages
Expense, Advertising Expense, and Utilitles Expense. The following transactions occurred during the January month:
a. Recelved $56,500 cash from customers on 11 for subscriptions that had already been eamed and charged on account
In 2020.
b. Purchased 10 new computer servers for $35,200 on 1/2; pald $12.,800 cash and signed a three-year note for the
remalnder owed.
c. Paid $15,000 for an Internet advertisement run on 1/3.
d. On January 4. purchased and recelved $4,800 of supplies on account.
e. Recelved $155.000 cash on 1/5 from customers for service revenue earned in January.
f On January 6. pald $4,800 cash for supplies purchased on January 4.
g. On January 7, sold 15,700 subscriptions at $14 each for services provided during January. Half was collected in cash
and half was sold on account.
h. Pald $350,000 In wages to employees on 1/30 for work done In January.
1. On January 31, recelved an electric and gas utlity bill for $6.350 for January utility services. The bill will be pald in
February.
Required:
1. Analyze the effect of the January transactions on the accounting equation, and Indicate the account, amount, and direction of the
effect of each transaction. (Enter any decreases to Assets, Liabilitles, and Stockholder's Equity with a minus sign.)
Assets
Liabilities
Stockholders' Equity
a.
a.
b.
b.
C.
d.
e.
f.
9.
9-
h.
i
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