.

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 $62,500 cash from customers for subscriptions that had already been earned in 2014.

b.

Received $210,000 cash from Electronic Arts, Inc. for service revenue earned in January.

c.

Purchased 10 new computer servers for $41,100; paid $12,200 cash and signed a three-year note for the remainder owed.

d.

Paid $13,400 for an Internet advertisement run on Yahoo! in January.

e.

Sold 12,300 monthly subscriptions at $11 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 $5,520 for January utility services. The bill will be paid in February.

g.

Paid $320,000 in wages to employees for work done in January.

h.

Purchased $5,750 of supplies on account.

i.

Paid $5,750 cash to the supplier in (h).

3.	Create T-accounts, enter the beginning balances shown above, post the journal entries to the T-accounts, and show the unadjusted ending balances in the T-accounts.