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Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $10. 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 \$10. 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, Salaries and Wages Expense, Advertising Expense, and Utilities Expense. The following transactions occurred during the January month: a. Received $52,250 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 $41,900 on 1/2; paid $12,000 cash and signed a three-year note for the remainder owed. c. Paid $15,600 for an Internet advertisement that ran today on 1/3. d. On January 4 , purchased and received $5,100 of supplies on account. e. Received $235,000 cash on 1/5 from customers for service revenue earned but not previously recorded in January. t On January 6 , paid $5,100 cash for supplies purchesed on January 4. g. On January 7, sold 10,100 subscriptions at $10 each for services provided during January. Half was collected in cash and half was sold on account. h. Paid $310,000 in wages to employees on 1/30 for work done in January. 1. On January 31 , recelved an electric and gas utility bill for $5,900 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.) 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.)

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