Question

[The following information applies to the questions displayed below. Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $10. 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 Supplies Equipment Buildings Land Accounts Payable Deferred Revenue Notes Payable (due 2025) Common Stock Retained Earnings $2,860,000 202,000 19,200 905,000 518,000 1,100,000 143,000 110,000 69,000 2,000,000 2,482,200 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. Received $65.000 cash from customers on 1/1 for subscriptions that had already been earned in 2017 < Prey 22 23 of 23 ! Next >

Answer 1

Cash					Accounts receivable
Beg.Bal.	$ 2,060,000				Beg.Bal.	$ 202,000
a)	$ 65,000	$ 13,300	b)		g)	$93,500	$ 65,000	a)
e)	$ 175,000	$ 17,400	c)			(187,000/2)
g)	$93,500	$ 3,200	f)
	(187,000/2)
		$ 325,000	h)
End.Bal.	$ 2,034,600				End.Bal.	$ 230,500
Supplies					Equipment
Beg.Bal.	$ 19,200				Beg.Bal.	$ 905,000
d)	$ 3,200				b)	$ 37,900
End.Bal.	$ 22,400				End.Bal.	$ 942,900
Buildings					Land
Beg.Bal.	$ 518,000				Beg.Bal.	$1,100,000
End.Bal.	$ 518,000				End.Bal.	$1,100,000
Accounts payable					Deferred Revenue
Beg.Bal.		$ 143,000			Beg.Bal.		$ 110,000
f)	$ 3,200	$ 3,200	d)
		$ 5,700	i)
End.Bal.		$ 148,700			End.Bal.		$ 110,000
Note payable (long term )					Comon stock
Beg.Bal.		$ 69,000			Beg.Bal.		$ 2,000,000
		$ 24,600	b)
		(37900-13,300)
End.Bal.		$ 93,600			End.Bal.		$ 2,000,000
Retained Earnings					Service Revenue
Beg.Bal.		$ 2,482,200			Beg.Bal.		$ 0
							$ 175,000	e)
							$ 187,000	g)
							(18700*$10)
End.Bal.		$ 2,482,200			End.Bal.		$ 362,000
Salaries and wages Expense					Adversting Expense
Beg.Bal.	$ 0				Beg.Bal.	$ 0
h)	$ 325,000				c)	$ 17,400
End.Bal.	$ 325,000				End.Bal.	$ 17,400
Utilities expense
Beg.Bal.	$ 0
i)	$ 5,700
End.Bal.	$ 5,700

VINISHING GAMES CORPORATION
Unadjusted Trial Balance
Account Name	Debit	Credit
Cash	$ 2,034,600
Accounts Receivable	$ 230,500
Supplies	$ 22,400
Equipment	$ 942,900
Buildings	$ 518,000
Land	$1,100,000
Accounts Payable		$ 148,700
Deferred Revenue		$ 110,000
Notes payable (long term )		$ 93,600
Common stock		$ 2,000,000
Retained earnings		$ 2,482,200
Services Revenues.		$ 362,000
Salaries and wages Expenses	$ 325,000
Advertising Expenses	$ 17,400
Utilities Expenses	$ 5,700
Totals	$ 5,196,500	$ 5,196,500