Question

Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $13. At the start of January 2015, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows: Cash Accounts Receivable Supplies Equipment Land Building Accounts Payable Unearned Revenue Notes Payable (due 2018) Common Stock Retained Earnings $2,000,000 187,000 23,900 886,000 1,660,000 463,000 130,000 88,000 70,000 2,300,000 2,631,900 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.

Answer 1

journal entry :

Transaction	General Journal	Debit	credit
g	Wages expenses	400000
	Cash		400000
	(To record wages paid)