Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $14. At the start of January 2018, VGC's Income statement accounts had zero balances and Its balance sheet account balances were as follows: Cash $1,738,e00 188,e00 15,200 921,808 508,e00 1,798, e00 153,e00 163,e00 124, e00 2,900, e00 1,812, 288 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 Utilities Expense. The following transactions occurred during the January month: a. Recelved $66,750 cash from customers on 1/1 for subscriptions that had already been earned in 2017. b. Purchased 10 new computer servers for $36,400 on 1/2: pald $15,700 cash and signed a three-year note for the remalnder owed. c. Pald $11,700 for an Internet advertisement run on 1/3. d. On January 4. purchased and recelved $5.400 of supplies on account. e. Recelved $210.000 cash on 1/5 from customers for service revenue earned in January. f Paid $5.400 cash to a supplier on January 6. g. On January 7, sold 1.700 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 utility bill for $6.210 for January utility services. The bill will be paid in February. Prepare an unadjusted trial balance as of January 31, 2018. VANI SHING GAMES CORPORATION Unadjusted Trial Balance Account Name Debit Credit Cash Accounts Receivable Supplies Equipment Buildings Land Accounts Payable Deferred Revenue Notes Payable (long-term) Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Advertising Expense Utities Expense Total
Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $14. At the start of January 2018, VGC's Income statement accounts had zero balances and Its balance sheet account balances were as follows: Cash $1,738,e00 188,e00 15,200 921,808 508,e00 1,798, e00 153,e00 163,e00 124, e00 2,900, e00 1,812, 288 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 Utilities Expense. The following transactions occurred during the January month: a. Recelved $66,750 cash from customers on 1/1 for subscriptions that had already been earned in 2017. b. Purchased 10 new computer servers for $36,400 on 1/2: pald $15,700 cash and signed a three-year note for the remalnder owed. c. Pald $11,700 for an Internet advertisement run on 1/3. d. On January 4. purchased and recelved $5.400 of supplies on account. e. Recelved $210.000 cash on 1/5 from customers for service revenue earned in January. f Paid $5.400 cash to a supplier on January 6. g. On January 7, sold 1.700 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 utility bill for $6.210 for January utility services. The bill will be paid in February. Prepare an unadjusted trial balance as of January 31, 2018. VANI SHING GAMES CORPORATION Unadjusted Trial Balance Account Name Debit Credit Cash Accounts Receivable Supplies Equipment Buildings Land Accounts Payable Deferred Revenue Notes Payable (long-term) Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Advertising Expense Utities Expense Total
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 2018, VGC's income statement accounts had zero balances and Its balance
sheet account balances were as follows:
Cash
$1,738, e08
188, e00
15, 200
921, e00
508,e00
1,798, e00
153,000
Accounts Receivable
Supplies
Equipment
Buildings
Land
Accounts Payable
163, e00
124,e00
2,908,808
1,812, 288
Deferred Revenue
Notes Payable (due 2825)
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 Utilities Expense. The following transactions occurred during the January month:
a. Recelved $66,750 cash from customers on 1/1 for subscriptions that had already been earned in 2017.
b. Purchased 10 new computer servers for $36,400 on 1/2; pald $15,700 cash and signed a three-year note for the
remalnder owed.
c. Pald $1.700 for an Internet advertisement run on 1/3.
d. On January 4. purchased and received $5.400 of supplies on account.
e. Recelved $210.000 cash on 1/5 from customers for service revenue earned in January.
f. Pald $5.400 cash to a supplier on January 6.
g. On January 7. sold 1.700 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 $6.210 for January utility services. The bill will be paid in
February.
4. Prepare an unadjusted
balance as of January 31, 2018.
VANI SHING GAMES CORPORATION
Unadjusted Trial Balance
Account Name
Debit
Credit
Cash
Accounts Receivable
Supplies
Equipment
Buildings
Land
Accounts Payable
Deferred Revenue
Notes Payable (long-term)
Common Stock
Retained Earnings
Service Revenue
Salaries and Wages Expense
Advertising Expense
Utilities Expense
Total
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