1. Business
  2. Accounting
  3. required 1 analyze the effect of the january transactions shown...

Question: required 1 analyze the effect of the january transactions shown...

Question details

Required: 1. Analyze the effect of the January transactions (shown below) on the accounting equation, and indicate the account, amount, and direction of the effect (+ for increase and for decrease) of each transaction. (Enter any decreases to account balances with a minus sign.) a. Received $70,000 cash from customers for subscriptions that had already been earned in 2014 b. Received $190,000 cash from Electronic Arts, Inc for service revenue earned in January c. Purchased 10 new computer servers for $31,500; paid S16.500 cash and signed a three-year note for the remainder owed d. Paid $16,200 for an Internet advertisement run on Yahoo! in January e. Sold 19,300 monthly subscriptions at $13 each for services provided during January. Half was collected in cash and half was sold on account f Received an electric and gas utility bill for $6.010 for January utlity services The bill will be paid in February g. Paid $400,000 in wages to employees for work done in January h. Purchased $3,900 of supplies on account i. Paid $3.900 cash to the supplier in (h)
IThe following information applies to the questions displayed below Vanishing Games Corporation (VGC) operates a massively mutipleyer online game, charging players a monthly subscription of $13. At the start of January 2015. VGCs income statement accounts had zero balances and its balance sheet account balances were as follows $2.000.000 187000 23,900 886,000 1660.000 463.000 130,000 88,000 70,000 2.300,000 2.631.900 Cash Accounts Receivable Supplies Equipment Land Accounts Payable Unearned Revenue Notes Payable (due 2018) Common Stock Retained Eärnings In addition to the above accounts VGCs chart of accounts includes the following Service Revenue. Salaries and Wages Expense. Advertiaing Expense and Utilities Expense
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution