C$3-1($Algo$)$ Analyzing, Recording, and Posting, and Preparing and Evaluating FInanclal Statements

$($Chapters $1-3)[$LO $3-2,$ LO $3-3,$ LO $3-4,$ LO $3-5]$

$[$The following information applles to the questlons displayed below.$]$

Vanishing Games Corporation $($VGC$)$ operates a massively multiplayer online game, charging players a monthly

subscription of $$12$ At the start of January $2024,$ VGC$\text{'}$s income statement accounts had zero balances and its balance

sheet account balances were as follows:

In addition to the above accounts, VGC$\text{'}$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 $$55,250$ cash from customers on January $1$ for subscriptions that had already been earned and charged on

account in $2023.$

b$.$ Purchased $10$ new computer servers for $$39,600$ on January $2$; pald $$11,000$ cash and signed a three$-$year note for the

remalnder owed.

c$.$ Pald $$18,700$ for an Internet advertisement run on January $3.$

d$.$ On January $4,$ purchased and recelved $$5,000$ of supplies on account.

e$.$ Recelved $$185,000$ cash on January $5$ from customers for service revenue earned in January.

$f$ On January $6,$ pald $$5,000$ cash for supplies purchased on account on January $4.$

g$.$ On January $7,$ sold $13,200$ subscriptions at $$12$ each for services provided during January. Half was collected in cash

and half was sold on account.

h$.$ Pald $$315,000$ in wages to employees on January $30$ for work done in January.

On January $31,$ recelved an electric and gas utllity bill for $$5,980$ for January utility services. The bill will be pald in

February.

C$3-1($Algo$)$ Part $3$

Required:

Enter the beginning balances shown above in the following T$-$accounts and post the journal entries.