Question

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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 $13. At the start of January 2018, VGC's income statement accounts had zero balances and its balance sheet account balances were as follows:________.
Cash $1,600,000
Accounts Receivable 174,000
Supplies 15,100
Equipment 930,000
Buildings 510,000
Land 2,050,000
Accounts Payable 113,000
Deferred Revenue 74,800
Notes Payable (due 2025) 94,800
Common Stock 2,500,000
Retained Earnings 2,498,100
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 $57,750 cash from customers on 1/1 for subscriptions that had already been earned in 2017.
B. Purchased 10 new computer servers for $41,500 on 1/2; paid $11,500 cash and signed a three-year note for the remainder owed.
C. Paid $14,300 for an Internet advertisement run on 1/3.
D. On January 4, purchased and received $5,300 of supplies on account.
E. Received $150,000 cash on 1/5 from customers for service revenue earned in January.
F. Paid $5,300 cash to a supplier on January 6.
G. On January 7, sold 19,900 subscriptions at $13 each for services provided during January. Half was collected in cash and half was sold on account.
H. Paid $380,000 in wages to employees on 1/30 for work done in January.
I. On January 31, received an electric and gas utility bill for $6,260 for January utility services. The bill will be paid in February.

Answer 1

Cash 57,750 debit

Account receivables 57,750 credit

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Equipment 41,500 debit

cash 11,500 credit

note payable 30,000 credit

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Advertising Expense 14,300 debit

cash 14,300 credit

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supplies 5,300 debit

account payables 5,300 credit

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cash 150,000 debit

service revenue 150,000 credit

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account payables 5,300 debit

cash 5,300 credit

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cash 129,350 debit

account receivables 129,350 debit

services revenue 258,700 credit

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wages expense 380,000 debit

cash 380,000 credit

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utilities expense 6,260 debit

account payable 6,260 credit

Step-by-step explanation:

To make thge jounral entries we must follow the basic principles:

debit = credit

and one value per account

Is important to comment that A state the income has been earned so we deduct from account recievables

then. we again receive cash for service earned

In none ofthe case we are doing the recognition of hte deferred revenue so this, stays untouched.

G) 19,900 x $13 each = $258,700

half cash-half credit : 258,700 / 2 = 129,350