Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $13. At the start of January 2021, VGC's Income statement accounts had zero balances and Its balance sheet account balances were as follows Cash Accounts Receivable Supplies Equipment Buildings Land Accounts Payable Deferred Revenue Notes Payable (due 2025) Common Stock Retained Earnings $ 2,000,000 187,000 23,900 886,000 463,000 1,660,000 130,000 88,000 70,000 2,300,000 2,631,900 In addition to the above accounts, VGC's 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 a Received $70,000 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 $31,500 on 1/2 paid $16,500 cash and signed a three-year note for the remainder owed. c Pald $16,200 for an Internet advertisement that ran today on 1/3. d. On January 4, purchased and received $3,900 of supplies on account e Received $190.000 cash on 1/5 from customers for service revenue earned but not previously recorded in January On January 6, paid $3,900 cash for supplies purchased on January 4. g. On January 7, sold 19.300 subscriptions at $13 each for services provided during January Half was collected in cash and half was sold on account MON h Paid $400,000 in wages to employees on 1/30 for work done in January On January 31, received an electric and gas utility bill for $6,010 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 Assets, Liabilities, and Stockholder's Equity with a minus sign.) Assets Liabilities Stockholders' Equity

Vanishing Games Corporrton (VGC) operates a massively mutuplayer online game, charging players a monthly subscription of \$13. At the start of January 202V VGCs income statement accounts had zero balances and its balance sheet account balances were as follown: In addivon to the above accounts, VGCs chart of accounts includes the following Service Revenue, Salarles and Wages Expense, Advertising Expense, and Uulines Expense. The following transactions occurred during the January mornt: a. Received $70,000 cash from customerk on 17 for subscriptions that had already been eamed and charged on account in 2020 b. Purchased 10 new computer servers for $31,500 on 1/2, pald $16,500 cash and signed a three-year note for the remainder owed. c. Pasd $16.200 for an internet advertsement that ran today on 1/3 d. On January 4, purchased and receved $3,900 of supplies on account. e. Recelved $190.000 cach on 15 from customers for sence revenue eamed but not previously recorded in January. On January 6 , pald $3,900 cash for supplies purchased on January 4 9. On January 7, sold 19,300 subscriptions at $13 each for semices provided during January Hali was collected in cash and half was sold on account. h. Paid $400,000 in wages to employees on 1/30 for work done in January 1 On January 31 , recelved an electric and gas utility bill for $6.010 for January unity services. The bill wil 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 Assets, Liabilities, and Stockholder's Equity with a minus sign)