In addition to the above accounts, VGC's chart of accounts includes the following: Service Revenue. Salaries and Woges Expense, Advertising Expense, and Utilities Expense. The following transactions occurred during the January month a. Recelved $55.250 cash from customers on 11 for subscriptions that had already been earned and charged on account in 2020 . b. Purchased 10 new computer servers for $39,600 on 1/2; paid $11,000 cash and signed a three-year note for the remainder owed. c. Paid $18,700 for an Internet advertisement run on 1/3. d. On January 4, purchased and received $5,000 of supplies on account. e. Received $185,000 cash on 1/5 from customers for service fevenue earned in January. 1. On January 6, paid $5,000 cash for supplies purchased on January 4. g. On January 7, sold 13,200 subscriptions at $12 each for services provided during January. Hoif was collected in cash and balf was sold on account. h. Paid $315,000 in wages to employees on 1/30 for work done in January. On January 31 , recelved an electric and gas utility bis for $5,980 for January utility services. The bill will be paid in February. C3-1 (Algo) Part 1 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, Liobilities, and Stockholder's Equity with a minus sign.) Required information C3-1 (Algo) Analyzing, Recording, and Posting, and Preparing and Evaluating Financial Statements (Chapters 1-3) [LO 3-2, LO 3-3, LO 3-4, LO 3-5] [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's income statement accounts had zero balances and its balance sheet account balances were as follows: In addition to the above accounts, VGC's chart of accounts includes the following: Service Revenue, Salarles and Wages Expense, Advertising Expense, and Utilities Expense. The following transactions occurred during the January month: a. Recelved $55,250 cash from customers on 1/1 for subscriptions that had already been earned and chatged on account in 2020. b. Purchased 10 new computer servers for $39,600 on 1/2 paid $11,000 cash and signed a three-year note for the 1. Analyze the effect of the Jamuary transactions on the accounting equation, and indicate the account, amount, and directon of the effect of each transaction. (Enter sny decreases to Assets, Lisbilities, and Stockholder's Equity with n minus sign.)
