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Chec Required information [The following information applies to the questions displayed below.) Vanishing Games Corporation (VGC) operates a massively multiplayer online game, charging players a monthly subscription of $12. At the start of January 2018, 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) Comeon Stock Retained ternings $1,590,000 245,000 17,800 922,000 435,000 1,250,000 137,000 140,000 81,000 2,800,000 1,301,800 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 $65,250 cash from customers on 1/1 for subscriptions that had already been earned in 2017. b. Purchased 10 new computer servers for $34,600 on 1/2 paid $14,400 cash and signed a three-year note for the remainder owed. c. Paid $12.600 for an Internet advertisement run on 1/3. 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: I a. Received $65,250 cash from customers on 11 for subscriptions that had already been earned in 2017. b. Purchased 10 new computer servers for $34,600 on 12; paid $14,400 cash and signed a three-year note for the remainder owed. c. Paid $12,600 for an Internet advertisement run on 1/3. d. On January 4, purchased and received $3,300 of supplies on account e. Received $215,000 cash on 1/5 from customers for service revenue earned in January Poid $3,300 cash to a supplier on January 6. g. On January 7, sold 19,200 subscriptions at $12 each for services provided during January. Half was collected in cash and half was sold on account h. Pald $420,000 in wages to employees on 130 for work done in January On January 31, received an electric and gas utility bill for $5,250 for January utility services. The bill will be paid in February Ranura 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 account balances with a minus sign.) Assets Liabilities a. Cash Stockholders' Eq 65,250 65,250 b PA f. 0 h Prey 1 of 2 !!! Next >

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