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Please help get this complete and correct. What is missing here? Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly

Please help get this complete and correct. What is missing here?

Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $13. At the start of January 2018, VGCs income statement accounts had zero balances and its balance sheet account balances were as follows:

Cash $ 2,230,000
Accounts Receivable 211,000
Supplies 16,700
Equipment 928,000
Buildings 425,000
Land 1,630,000
Accounts Payable 134,000
Deferred Revenue 132,000
Notes Payable (due 2025) 123,000
Common Stock 2,900,000
Retained Earnings 2,151,700

In addition to the above accounts, VGCs 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:

  1. Received $71,750 cash from customers on 1/1 for subscriptions that had already been earned in 2017.
  2. Purchased 10 new computer servers for $40,800 on 1/2; paid $15,600 cash and signed a three-year note for the remainder owed.
  3. Paid $15,100 for an Internet advertisement run on 1/3.
  4. On January 4, purchased and received $4,500 of supplies on account.
  5. Received $220,000 cash on 1/5 from customers for service revenue earned in January.
  6. Paid $4,500 cash to a supplier on January 6.
  7. On January 7, sold 13,800 subscriptions at $13 each for services provided during January. Half was collected in cash and half was sold on account.
  8. Paid $370,000 in wages to employees on 1/30 for work done in January.
  9. On January 31, received an electric and gas utility bill for $5,750 for January utility services. The bill will be paid 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 account balances with a minus sign.)

image text in transcribed

Answer is not complete. Assets Liabilities Stockholders' Equity a. Notes Payable (long-term) 25,200 Advertising Expense x 15,100 Cash Accounts Receivable Equipment Cash Cash Supplies Cash Cash Cash Accounts Receivable Cash 71,750 (71,750) 40,800 (15,600) (15,100) 4,500 220,000 4,500 X 99,700 X 220,000 (370,000) Accounts Payable 4,500 Accounts Payable 4,500 Service Revenue 309,700 Salaries and Wages Expense Utilities Expense (370,000) 5,750 Accounts Payable 3,750

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