[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 $12 At the start of January 2021, VGC's Income statement accounts had zero balances and its balance sheet account balances were as follows: $ 1, 680, 000 182,000 20,500 906, 000 462,000 1,690,000 167,000 97,000 111,000 2,200, 000 2,365,500 Cash Accounts Receivable Supplies Equipment Buildings 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, Salaries and Wages Expense, Advertising Expense, and Utilites Expense. The following transactions occurred during the January month: a. Recelved $55,250 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 $39,600 on 1/2: pald $1,000 cash and signed a three-year note for the remalnder owed. c. Paid $18,700 for an Internet advertisement run on 1/3. d. On January 4. purchased and received $5,000 of supplies on account. e. Recelved $185,000 cash on 1/5 from customers for service revenue earned In January. f. Paid $5.000 cash to a suppler on January 6. g. On January 7, sold 13,200 subscriptions at $12 each for services provided during January. Half was collected In cash and half was sold on account. h. Paid $315,000 in wages to employees on 1/30 for work done In January. 1. On January 31, recelved an electric and gas utility bill for $5.980 for January utility services. The bil will be pald in February. Prepare Journal entries for the January transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field.)
[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 $12 At the start of January 2021, VGC's Income statement accounts had zero balances and its balance sheet account balances were as follows: $ 1, 680, 000 182,000 20,500 906, 000 462,000 1,690,000 167,000 97,000 111,000 2,200, 000 2,365,500 Cash Accounts Receivable Supplies Equipment Buildings 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, Salaries and Wages Expense, Advertising Expense, and Utilites Expense. The following transactions occurred during the January month: a. Recelved $55,250 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 $39,600 on 1/2: pald $1,000 cash and signed a three-year note for the remalnder owed. c. Paid $18,700 for an Internet advertisement run on 1/3. d. On January 4. purchased and received $5,000 of supplies on account. e. Recelved $185,000 cash on 1/5 from customers for service revenue earned In January. f. Paid $5.000 cash to a suppler on January 6. g. On January 7, sold 13,200 subscriptions at $12 each for services provided during January. Half was collected In cash and half was sold on account. h. Paid $315,000 in wages to employees on 1/30 for work done In January. 1. On January 31, recelved an electric and gas utility bill for $5.980 for January utility services. The bil will be pald in February. Prepare Journal entries for the January transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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[The following information applies to the questions displayed below]
Vanishing Games Corporatlon (VGC) operates a massively multiplayer online game, charging players a monthly
subscription of $12 At the start of January 2021, VGC's Income statement accounts had zero balances and its balance
sheet account balances were as follows:
$ 1,680,889
182,000
20,500
906, 000
462,000
Cash
Accounts Receivable
Supplies
Equipment
Buildings
Land
1,69e,000
167,000
97,000
111,000
2,200,000
2,365,589
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, Salaries and Wages
Expense, Advertising Expense, and Utilitles Expense. The following transactions occurred during the January month:
a. Recelved $55,250 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 $39,600 on 1/2; pald $11,000 cash and signed a three-year note for the
remainder owed.
c. Pald $18,700 for an Internet advertisement run on 1/3.
d. On January 4. purchased and recelved $5,000 of suppliles on account.
e. Recelved $185.000 cash on 1/5 from customers for service revenue earned in January.
f. Pald $5.000 cash to a supplier on January 6.
g. On January 7, sold 13,200 subscriptions at $12 each for services provided during January. Half was collected In cash
and half was sold on account.
h. Pald $315,000 In wages to employees on 1/30 for work done In January.
1. On January 31, recelved an electric and gas utility bill for $5.980 for January utility services. The bill will be pald in
February.
Prepare Joumal entries for the January transactions. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
Vlew transaction Ilat
Journal entry worksheet
2 3 4 5 6
1
>
Record the $55,250 cash from customers on 1/1 for subscriptions that had
already been earned and charged on account in 2020.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4959d4f7-c515-4b84-8a14-00389cef5562%2F71abda4b-c5a1-413f-b137-8c8b49dc0b30%2Favghhr4i_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below]
Vanishing Games Corporatlon (VGC) operates a massively multiplayer online game, charging players a monthly
subscription of $12 At the start of January 2021, VGC's Income statement accounts had zero balances and its balance
sheet account balances were as follows:
$ 1,680,889
182,000
20,500
906, 000
462,000
Cash
Accounts Receivable
Supplies
Equipment
Buildings
Land
1,69e,000
167,000
97,000
111,000
2,200,000
2,365,589
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, Salaries and Wages
Expense, Advertising Expense, and Utilitles Expense. The following transactions occurred during the January month:
a. Recelved $55,250 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 $39,600 on 1/2; pald $11,000 cash and signed a three-year note for the
remainder owed.
c. Pald $18,700 for an Internet advertisement run on 1/3.
d. On January 4. purchased and recelved $5,000 of suppliles on account.
e. Recelved $185.000 cash on 1/5 from customers for service revenue earned in January.
f. Pald $5.000 cash to a supplier on January 6.
g. On January 7, sold 13,200 subscriptions at $12 each for services provided during January. Half was collected In cash
and half was sold on account.
h. Pald $315,000 In wages to employees on 1/30 for work done In January.
1. On January 31, recelved an electric and gas utility bill for $5.980 for January utility services. The bill will be pald in
February.
Prepare Joumal entries for the January transactions. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
Vlew transaction Ilat
Journal entry worksheet
2 3 4 5 6
1
>
Record the $55,250 cash from customers on 1/1 for subscriptions that had
already been earned and charged on account in 2020.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
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