![Required Information<br>[The following information applies to the questions dlisplayed below.]<br>Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly<br>subscription of $14. At the start of January 2021, VGC's Income statement accounts had zero balances and Its balance<br>sheet account balances were as follows:<br>$ 2,880,889<br>175,000<br>20,100<br>Cash<br>Accounts Receivable<br>Supplies<br>Equipment<br>Buildings<br>967,000<br>445,000<br>1,59e,000<br>206,800<br>118,000<br>68,000<br>2,600, 809<br>2,285,189<br>Land<br>Accounts Payable<br>Deferred Revenue<br>Notes Payable (due 2025)<br>Connon Stock<br>Retained Earnings<br>In addition to the above accounts. VGC's chart of accounts Includes the following: Service Revenue, Salarles and Wages<br>Expense, Advertising Expense, and Utilitles Expense. The following transactions occurred during the January month:<br>a. Recelved $56,500 cash from customers on 11 for subscriptions that had already been eamed and charged on account<br>In 2020.<br>b. Purchased 10 new computer servers for $35,200 on 1/2; pald $12.,800 cash and signed a three-year note for the<br>remalnder owed.<br>c. Paid $15,000 for an Internet advertisement run on 1/3.<br>d. On January 4. purchased and recelved $4,800 of supplies on account.<br>e. Recelved $155.000 cash on 1/5 from customers for service revenue earned in January.<br>f On January 6. pald $4,800 cash for supplies purchased on January 4.<br>g. On January 7, sold 15,700 subscriptions at $14 each for services provided during January. Half was collected in cash<br>and half was sold on account.<br>h. Pald $350,000 In wages to employees on 1/30 for work done In January.<br>1. On January 31, recelved an electric and gas utlity bill for $6.350 for January utility services. The bill will be pald in<br>February.<br>Required:<br>1. Analyze the effect of the January transactions on the accounting equation, and Indicate the account, amount, and direction of the<br>effect of each transaction. (Enter any decreases to Assets, Liabilitles, and Stockholder's Equity with a minus sign.)<br>Assets<br>Liabilities<br>Stockholders' Equity<br>a.<br>a.<br>b.<br>b.<br>C.<br>d.<br>e.<br>f.<br>9.<br>9-<br>h.<br>i<br>](https://s3.us-east-1.amazonaws.com/storage.unifolks.com/qimg-008/008_yknpzz0-numbxtjk.png)
Extracted text: Required Information [The following information applies to the questions dlisplayed below.] Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $14. At the start of January 2021, VGC's Income statement accounts had zero balances and Its balance sheet account balances were as follows: $ 2,880,889 175,000 20,100 Cash Accounts Receivable Supplies Equipment Buildings 967,000 445,000 1,59e,000 206,800 118,000 68,000 2,600, 809 2,285,189 Land Accounts Payable Deferred Revenue Notes Payable (due 2025) Connon Stock Retained Earnings In addition to the above accounts. VGC's chart of accounts Includes the following: Service Revenue, Salarles and Wages Expense, Advertising Expense, and Utilitles Expense. The following transactions occurred during the January month: a. Recelved $56,500 cash from customers on 11 for subscriptions that had already been eamed and charged on account In 2020. b. Purchased 10 new computer servers for $35,200 on 1/2; pald $12.,800 cash and signed a three-year note for the remalnder owed. c. Paid $15,000 for an Internet advertisement run on 1/3. d. On January 4. purchased and recelved $4,800 of supplies on account. e. Recelved $155.000 cash on 1/5 from customers for service revenue earned in January. f On January 6. pald $4,800 cash for supplies purchased on January 4. g. On January 7, sold 15,700 subscriptions at $14 each for services provided during January. Half was collected in cash and half was sold on account. h. Pald $350,000 In wages to employees on 1/30 for work done In January. 1. On January 31, recelved an electric and gas utlity bill for $6.350 for January utility services. The bill will be pald in February. Required: 1. Analyze the effect of the January transactions on the accounting equation, and Indicate the account, amount, and direction of the effect of each transaction. (Enter any decreases to Assets, Liabilitles, and Stockholder's Equity with a minus sign.) Assets Liabilities Stockholders' Equity a. a. b. b. C. d. e. f. 9. 9- h. i