$1$

$!$

Required Informatlon

Part $1$ of $7$

$[$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 $$12.$ At the start of January $2021,$ VGC$\text{'}$s income statement accounts had zero balances and its balance sheet account balances were as follows:

$3\mathrm{.}7$

points

References

Cash

Accounts Receivable

Supplies

Equipnent

Buildings

Land

Accounts Payable

Deferred Revenue

Notes Payable $($due $2025)$

Common Stock

Retained Earnings

$ $1,240,$

$183,6in9$

$17,200$

$953,900$

$498,000$

$1,948,e$

$111,000$

$157,e3$

$152,000$

$2,790,e$

$2,411,290$

In addition to the above accounts, VGC$\text{'}$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 $$60,250$ cash from customers on $\frac{1}{1}$ for subscriptions that had already been earned and charged on account in $2020.$

b$.$ Purchased $10$ new computer servers for $$41,800$ on $\frac{1}{2}$; paid $$19,600$ cash and signed a three$-$year note for the remainder owed.

c$.$ Paid $$12400$ for an Internet advertisement that ran today on $\frac{1}{3}.$

d$.$ On January $4,$ purchased and received $$5,500$ of supplies on account.

e$.$ Received $$200,000$ cash on $\frac{1}{5}$ from customers for service revenue earned but not previously recorded in January.

f: On January $6,$ paid $$5,500$ cash for supplies purchased on January $4.$

$9.$ On January $7,$ sold $13,000$ subscriptions at $$12$ each for services provided during January. Half was collected in cash and half was sold on account.

h$.$ Paid $$330,000$ in wages to employees on $\frac{1}{30}$ for work done in January.

i$.$ On January $31,$ received an electric and gas utility bill for $$6,250$ for January utility services. The bill will be paid in February.

Required:

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, Llabllitles, ond Stockholder's Equity with a minus sign.