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 $1,738,800 188,e00 15, 200 921,e00 Accounts Receivable Supplies Equipment Buildings 588,e00 1,798,e00 Land Accounts Payable 153,e00 163, e00 124,800 2,900, e0e 1,812, 200 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 $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 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 11,700 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 utlity services. The bill will be pald in February. Prepare a classified Balance Sheet at January 31, 2018. using your response to part 6. VANI SHING GAMES CORPORATION Balance Sheet
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 $1,738,800 188,e00 15, 200 921,e00 Accounts Receivable Supplies Equipment Buildings 588,e00 1,798,e00 Land Accounts Payable 153,e00 163, e00 124,800 2,900, e0e 1,812, 200 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 $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 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 11,700 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 utlity services. The bill will be pald in February. Prepare a classified Balance Sheet at January 31, 2018. using your response to part 6. VANI SHING GAMES CORPORATION Balance Sheet
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
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
100%
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
$1,738,808
188, e00
15, 200
921,e00
508,e00
1,798, e00
Accounts Receivable
Supplies
Equipment
Buildings
Land
Accounts Payable
153,e00
163, eee
124,000
Deferred Revenue
Notes Payable (due 2025)
Connon Stock
Retained Earnings
2,900, e00
1,812, 200
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 $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
remalnder owed.
c. Pald $1.700 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. Pald $5.400 cash to a supplier 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. 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 utlity services. The bill will be pald in
February.
7. Prepare a classified Balance Sheet at January 31, 2018. using your response to part 6.
VANI SHING GAMES CORPORATION
Balance Sheet
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education