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[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

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[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 \$11. 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 Exflense. The following transactions occurred during the January month: a. Received $55,750 cash from customers on 1/1 for subscriptions that had already been earned and charged on account. in 2020. b. Purchased 10 new computer servers for $35,400 on 1/2; paid $14,300 cash and signed a three-year note for the remainder owed. c. Paid $11,000 for an Internet advertisement run on 1/3. d. On January 4. purchased and received $3,600 of supplies on account. e. Received $240,000 cash on 1/5 from customers for service revenue earned in January. f. On January 6, paid $3,600 cash for supplies purchased on January 4. g. On January 7, sold 11,200 subscriptions at $11 each for services provided during January. Half was collected in cash and half was sold on account. h. Paid $340,000 in wages to employees on 1/30 for work done in January. i. On January 31, received an electric and gas utility bill for $5,570 for January utility services. The bill will be paid in February. 6. On January 6 , pais 59.600 cesh for supples purchased on Jancay 4. hat was sold on account. h. Paid $340,000 in meaes to employeet en y30 for rook dene in deway February. Required: 1. A7alyze the erfocr of the lanuary transactions on the accountng oquation, and indicate the accourig amiriours, and diretion or the elfect of cach trensaction. (finter any decreases to Assets, Lipbinties, and Stockholder's fquity with o minus sign.)

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