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 Accounts Receivable $1,730, eee 188, e00 15, 200 921,000 S88,e00 1,790,000 153,e00 163, ee0 124,000 2,900, 000 1,812, 200 Supplies Equipment Bulldings 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 $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: paid $15,700 cash and signed a three-year note for the remainder owed. c. Paid $1.700 for an Internet advertisement run on 1/3. d. On January 4. purchased and recelved $5,400 of supples 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. Paid $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 pald in February.
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 Accounts Receivable $1,730, eee 188, e00 15, 200 921,000 S88,e00 1,790,000 153,e00 163, ee0 124,000 2,900, 000 1,812, 200 Supplies Equipment Bulldings 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 $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: paid $15,700 cash and signed a three-year note for the remainder owed. c. Paid $1.700 for an Internet advertisement run on 1/3. d. On January 4. purchased and recelved $5,400 of supples 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. Paid $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 pald in February.
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
$1,730, e00
188, e00
15, 200
921, e00
508, e00
1,798,e00
153,e00
163,e00
124,e00
2, 900, e00
1,812, 200
Accounts Receivable
Supplies
Equipment
Buildings
Land
Accounts Payable
Deferred Revenue
Notes Payable (due 2025)
Conmon 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 $11.700 for an Internet advertisement run on 1/3.
d. On January 4. purchased and recelved $5,400 of supples 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 suppler on January 6.
g. On January 7, sold 11,700 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.
1. On January 31, recelved an electric and gas utility bill for $6.210 for January utility services. The bill will be pald in
February.
Transcribed Image Text:Cash
Accounts Receivable
Beg. Bal
a.
1,730,000
88,750
Beg. Bal
b.
End. Bal
End. Bal
1,798,750
Supplies
Equipment
Beg. Bal
Beg. Bal
End. Bal
End. Bal
Buildings
Land
Beg. Bal
Beg. Bal
End. Bal
End. Bal
Accounts Payable
Deferred Revenue
Beg. Bal
Beg. Bal
End. Bal
End. Bal
Notes Payable (long-term)
Common Stock
Beg. Bal
Beg. Bal
End. Bal
Еnd. Bal
Retained Earnings
Service Revenue
Beg. Bal
Beg. Bal
End. Bal
End. Bal
Salaries and Wages Expense
Advertising Expense
Beg. Bal
Beg. Bal
End. Bal
End. Bal
Utilities Expense
Beg. Bal
End. Bal
Expert Solution
Step 1 Introduction
The ledger accounts are to be prepared using given transactions.
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