E3-21** REVISED (see directions below)

a. Received $5! cas" #ro$ c%sto$ers s%bscri&tions t"at "ad alread' been earned in 2(.
b. Received $25! cas" #ro$ E)! Inc.! #or licensin* reven%e earned in t"e $ont" o# +an%ar' 21.
c. ,%rc"ased 1 new co$&%ter servers #or $33!5- &aid $1! cas" and si*ned a 3'r note #or rest.
d. ,aid $1! #or an Internet advertise$ent r%n on .a"oo/ In +an%ar' 21.
e. Sold 15! $ont"l' s%bscri&tions at $15 eac" #or services &rovided d%rin* t"e $ont" o# +an%ar'
21. 0al# was collected in cas" and "al# was sold on acco%nt.
#. Received a %tilit' bill #or $535 #or +an%ar' 21 %tilit' services. 1"e bill will be &aid in 2eb.
*. ,aid $334! in wa*es to e$&lo'ees #or wor5 done in +an%ar' 21.
". ,%rc"ased $3! o# s%&&lies on acco%nt.
i. ,aid $3 cas" to t"e s%&&liers in (").
General Journal
DR 6R
a 7ot"in*/
0ad alread' "a&&ened.
b 6as" 25!
8icensin* Reven%e 25!
c E9%i&a$ent 33!5
6as" 1!
7otes ,a'able 23!5
d 6as" 1!
)dvertisin* E:&ense 1!
e 6as" 112!5
)ccts Receivable 112!5
S%bscri&tion Reven%e 225!
# ;tilities E:&ense 5!35
)ccts ,a'able 5!35
* <a*es E:&enses 334!
6as" 334!
" S%&&lies 3!
)ccts ,a'able 3!
i )ccts ,a'able 3!
6as" 3!
**Directions= do >o%rnal entries! t"en t-acco%nts! t"en t"e trial balance and ?nancials. .o% can co$&lete
t"is &roble$ in e:cel b' t'&in* in t"is s&reads"eet or 'o% can >%st "it &rint and write in t"e w"ole
&ro>ect li5e t"e "o$ewor5. 1"is is wort" 15 &oints and will be d%e in class on <ED// It is *raded on
acc%rac'. It will be "al# o@ i# 'o% wait %ntil 2RIAI wonBt acce&t it a#ter I ret%rn it to st%dents in class.
E3-21
DR 6R
6as" 1!23C!5
)cco%nts Receivable 2C2!5
S%&&lies 13!3
E9%i&$ent (4!
8and 1!2!
D%ildin* E22!
)cco%nts ,a'able 113!35
;nearned Revevn%e 33!5
7otes ,a'able 43!5
6ontrib%ted 6a&ital 2!5!
Retained Earnin*s 1!E1(!3
S%bscri&tion Reven%e 225!
8icensin* Reven%e 25!
<a*es E:&ense 334!
)dvertisin* E:&ense 1!
;tilities E:&ense 5!35
1otals E!EE!5 E!EE!5 c"ec5 ?*%re= E!EE!5
Revenues:
S%bscri&tion Reven%e 225!
8icensin* Reven%e 25!
1F1)8 25!
Expenses:
<a*es E:&ense 334!
)dvertisin* E:&ense 1!
;tilities E:&ense 5!35
1F1)8 3(3!35
Net Income (143,350) it is o5 t"at t"is is ne*ative/
De* RE 1!31(!3
,l%s 7et Inco$e (1E3!35)
Vanis"in* Ga$es 6or&oration
;nad>%sted 1rial Dalance
+an%ar' 31! 21
VG6
Inco$e State$ent
2or t"e 'ear ended +an%ar' 31! 21
VG6
State$ent o# Retained Earnin*s
2or t"e 'ear ended +an%ar' 31! 21
Hin%s Dividends 3! I
Ending Retained Earnings 1,27,350
Current Assets:
6as" 1!23C!5
)ccts Receivable 2C2!5
S%&&lies 13!3
1otal 6%rrent )ssets 1!51C!3
Noncurrent Assets:
E9%i&$ent (4!
8and 1!2!
D%ildin* E22!
1otal 7onc%rrent )ssets 2!53!
!otal "ssets 4,04,700 s"o%ld be $E!EC!3 (*ood >ob/)
Current Liabilities:
)cco%nts ,a'able 113!35
;nearned Revevn%e 33!5
1otal 6%rrent 8iabilities 14C!45
Noncurrent Liabilities:
7otes ,a'able 43!5
1otal 8iabilities 23!35
Stockholders' Equity:
6ontrib%ted 6a&ital 2!5!
Retained Earnin*s 1!23C!35
1otal Stoc5"oldersB E9%it' 3!33C!35
!otal #ia$ilities % &toc'(olders E)uit* 4,04,700 s"o%ld be $E!EC!3 (*ood >ob/)
VG6
Dalance S"eet
+an%ar' 31! 21
E3-21** REVISED (see directions below) E3-21
6as" 1!5! )cco%nts ,a'
Received $25! cas" #ro$ E)! Inc.! #or licensin* reven%e earned in t"e $ont" o# +an%ar' 21. )ccts Rec 15! ;nearned Rev
,%rc"ased 1 new co$&%ter servers #or $33!5- &aid $1! cas" and si*ned a 3'r note #or rest. S%&&lies 1E!3 7otes ,a'
E9%i&$ent 43E!5 6ontr 6a&ital
Sold 15! $ont"l' s%bscri&tions at $15 eac" #or services &rovided d%rin* t"e $ont" o# +an%ar' 8and 1!2! Ret Earnin*s
D%ildin* E22!
6as" )cco%nts ,a'able
bb 1!5! 1! c i 3!
b 25! 1! d
e 112!5 334! *
3! i
1!23C!5 ;nearned Reven%e
)cco%nts Receivable
bb 15!
e 112!5
2C2!5 7otes ,a'able
S%&&lies
bb 1E!3
" 3! 6ontrib%ted 6a&ital
13!3
E9%i&$ent
bb 43E!5
c 33!5
(4! Retained Earnin*s
8and
bb 1!2!
D%ildin*
bb E22!
**Directions= do >o%rnal entries! t"en t-acco%nts! t"en t"e trial balance and ?nancials. .o% can co$&lete
t"is &roble$ in e:cel b' t'&in* in t"is s&reads"eet or 'o% can >%st "it &rint and write in t"e w"ole
&ro>ect li5e t"e "o$ewor5. 1"is is wort" 15 &oints and will be d%e in class on <ED// It is *raded on
acc%rac'. It will be "al# o@ i# 'o% wait %ntil 2RIAI wonBt acce&t it a#ter I ret%rn it to st%dents in class.
E3-21
s"o%ld be $E!EC!3 (*ood >ob/)
s"o%ld be $E!EC!3 (*ood >ob/)
E3-21
14!
33!5
C!
2!5!
1!E1(!3
)cco%nts ,a'able S%bscri&tion Reven%e
14! bb 225! e
5!35 #
3! "
113!35
;nearned Reven%e 8icensin* Reven%e
33!5 bb 25! b
7otes ,a'able <a*es E:&ense
C! bb * 334!
23!5 c
43!5
6ontrib%ted 6a&ital )dvertisin* E:&ense
2!5! bb d 1!
Retained Earnin*s ;tilities E:&ense
1!E1(!3 bb # 5!35