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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

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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 $ 1,600,000 Accounts Receivable 174,000 Supplies 15,100 Equipment 930,000 Buildings 510,000 Land 2,050,000 Accounts Payable 113,000 Deferred Revenue 74,000 Notes Payable (due 2025) 94,000 Common Stock 2,500,000 Retained Earnings 2,498, 100 In addition to the above accounts, VGC's chart of accounts includes the following: Service Revenue, Salaries and Wage- Expense, Advertising Expense, and Utilities Expense. The following transactions occurred during the January month: a. Received $57,750 cash from customers on 1/1 for subscriptions that had already been earned and charged on accoun In 2020 b. Purchased 10 new computer servers for $41,500 on 12: paid $11,500 cash and signed a three-year note for the remainder owed c. Paid $14,300 for an Internet advertisement run on 1/3. d. On January 4, purchased and received $5,300 of supplies on account. e. Received $150,000 cash on 15 from customers for service revenue earned in January, f Paid $5,300 cash to a supplier on January 6. 9. On January 7, sold 19,900 subscriptions at $13 each for services provided during January. Half was collected in cash and half was sold on account. h. Paid $380,000 in wages to employees on 1/30 for work done in January 1. On January 31, received an electric and gas utility bill for $6,260 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.) Assats Liabilities Stockholders' Equity a Cash 1,600,000 a b + b - d . . . 9

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