Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $14. At the start of January 2021, VGCs income statement accounts had zero balances and its balance sheet account balances were as follows:

Cash	$ 1,730,000
Accounts Receivable	188,000
Supplies	15,200
Equipment	921,000
Buildings	508,000
Land	1,790,000
Accounts Payable	153,000
Deferred Revenue	163,000
Notes Payable (due 2025)	124,000
Common Stock	2,900,000
Retained Earnings	1,812,200

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 $66,750 cash from customers on 1/1 for subscriptions that had already been earned and charged on account in 2020.
2. Purchased 10 new computer servers for $36,400 on 1/2; paid $15,700 cash and signed a three-year note for the remainder owed.
3. Paid $11,700 for an Internet advertisement run on 1/3.
4. On January 4, purchased and received $5,400 of supplies on account.
5. Received $210,000 cash on 1/5 from customers for service revenue earned in January.
6. On January 6, paid $5,400 cash for supplies purchased on January 4.
7. On January 7, sold 11,700 subscriptions at $14 each for services provided during January. Half was collected in cash and half was sold on account.
8. Paid $350,000 in wages to employees on 1/30 for work done in January.
9. On January 31, received an electric and gas utility bill for $6,210 for January utility services. The bill will be paid in February.

rev: 09_22_2021_QC_CS-279217

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, Liabilities, and Stockholder's Equity with a minus sign.)

	Assets	=	Liabilities	+	Stockholders Equity
a.		=		+
a.		=		+
b.		=		+
b.		=		+
c.		=		+
d.		=		+
e.		=		+
f.		=		+
g.		=		+
g.		=		+
h.		=		+
i.		=		+

2. Prepare journal entries for the January transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
3. Enter the beginning balances shown above in the following T-accounts and post the journal entries.
4. Prepare an unadjusted trial balance as of January 31, 2021.
5. Prepare an Income Statement for the month ended January 31, 2021, using unadjusted balances from part 4.