Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $14. At the start of January 2015, VGCs income statement accounts had zero balances and its balance sheet account balances were as follows:

Cash	$	2,080,000
Accounts Receivable		175,000
Supplies		20,100
Equipment		967,000
Land		1,590,000
Building		445,000
Accounts Payable		206,000
Unearned Revenue		118,000
Notes Payable (due 2018)		68,000
Common Stock		2,600,000
Retained Earnings		2,285,100

In addition to the above accounts, VGCs chart of accounts includes the following: Service Revenue, Salaries and Wages Expense, Advertising Expense, and Utilities Expense.

1.	Analyze the effect of the January transactions (shown below) on the accounting equation, and indicate the account, amount, and direction of the effect (+ for increase and ? for decrease) of each transaction. (Enter any decreases to account balances with a minus sign.

a.	Received $56,500 cash from customers for subscriptions that had already been earned in 2014.
b.	Received $155,000 cash from Electronic Arts, Inc. for service revenue earned in January.
c.	Purchased 10 new computer servers for $35,200; paid $12,800 cash and signed a three-year note for the remainder owed.
d.	Paid $15,000 for an Internet advertisement run on Yahoo! in January.
e.	Sold 15,700 monthly subscriptions at $14 each for services provided during January. Half was collected in cash and half was sold on account.
f.	Received an electric and gas utility bill for $6,350 for January utility services. The bill will be paid in February.
g.	Paid $350,000 in wages to employees for work done in January.
h.	Purchased $4,800 of supplies on account.
i.	Paid $4,800 cash to the supplier in (h).

2.	Prepare journal entries for the January transactions listed in part 1, using the letter of each transaction as a reference. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field

3.	Create T-accounts, enter the beginning balances shown above, post the journal entries to the T-accounts, and show the unadjusted ending balances in the T-accounts.

4.	Prepare an unadjusted trial balance as of January 31, 2015.

5.	Prepare an Income Statement for the month ended January 31, 2015, using unadjusted balances from part 4.

6.	Prepare a Statement of Retained Earnings for the month ended January 31, 2015, using the beginning balance given above and the net income from part 5. Assume VGC has no dividends.

7.	Prepare a classified Balance Sheet at January 31, 2015, using your response to part 6.

8.	Calculate net profit margin, expressed as a percent. (Round your answer to 1 decimal place.)