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: Cash Accounts Receivable Supplies Equipment Buildings Land Accounts Payable $ 2,080,000 175,000 20,100 967,000 445,000 1,590,000 206,000 pok Deferred Revenue 118,000 Notes Payable (due 2025) Common Stock 68,000 2,600,000 2,285,100 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 Utilities Expense. ces The January transactions are shown below: a. Received $56,500 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 $35,200 on 1/2; paid $12,800 cash and signed a three-year note for the remainder owed. c. Paid $15,000 for an Internet advertisement that ran today on 1/3. d. On January 4, purchased and received $4,800 of supplies on account. e. Received $155,000 cash on 1/5 from customers for service revenue earned but not previously recorded in January. On January 6, paid $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 1/30 for work done in January. i. On January 31, received an electric and gas utility bill for $6,350 for January utility services. The bill will be paid in February. Requirement General Journal General Ledger Trial Balance Income Statement Stmt of Retained Earnings Balance Sheet Analysis Each journal entry is posted automatically to the general ledger. Che
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: Cash Accounts Receivable Supplies Equipment Buildings Land Accounts Payable $ 2,080,000 175,000 20,100 967,000 445,000 1,590,000 206,000 pok Deferred Revenue 118,000 Notes Payable (due 2025) Common Stock 68,000 2,600,000 2,285,100 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 Utilities Expense. ces The January transactions are shown below: a. Received $56,500 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 $35,200 on 1/2; paid $12,800 cash and signed a three-year note for the remainder owed. c. Paid $15,000 for an Internet advertisement that ran today on 1/3. d. On January 4, purchased and received $4,800 of supplies on account. e. Received $155,000 cash on 1/5 from customers for service revenue earned but not previously recorded in January. On January 6, paid $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 1/30 for work done in January. i. On January 31, received an electric and gas utility bill for $6,350 for January utility services. The bill will be paid in February. Requirement General Journal General Ledger Trial Balance Income Statement Stmt of Retained Earnings Balance Sheet Analysis Each journal entry is posted automatically to the general ledger. Che
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.
Question
Transcribed Image Text: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:
Cash
Accounts Receivable
Supplies
Equipment
Buildings
Land
Accounts Payable
$ 2,080,000
175,000
20,100
967,000
445,000
1,590,000
206,000
pok
Deferred Revenue
118,000
Notes Payable (due 2025)
Common Stock
68,000
2,600,000
2,285,100
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 Utilities Expense.
ces
The January transactions are shown below:
a. Received $56,500 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 $35,200 on 1/2; paid $12,800 cash and signed a three-year note for the remainder owed.
c. Paid $15,000 for an Internet advertisement that ran today on 1/3.
d. On January 4, purchased and received $4,800 of supplies on account.
e. Received $155,000 cash on 1/5 from customers for service revenue earned but not previously recorded in January.
On January 6, paid $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 1/30 for work done in January.
i. On January 31, received an electric and gas utility bill for $6,350 for January utility services. The bill will be paid in February.
Requirement
General
Journal
General
Ledger
Trial Balance
Income
Statement
Stmt of
Retained
Earnings
Balance Sheet
Analysis
Each journal entry is posted automatically to the general ledger.
Che
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