In 2002, Brad McQuaid and Jeff Butler founded Sigil Games Online, Inc. (now owned by Sony Online Entertainment) with the mission of creating massively multiplayer online (MMO) games. Its "vanguard" product has been the game Vanguard: Saga of Heroes, released in winter of 2007. The company intends to sell subscriptions to its game online. For the sake of this exercise, assume that Sigil has been selling subscriptions for Vanguard for one full year (2009) at $15 per month. At the start of 2010, its income statement accounts had zero balances, and its balance sheet account balances were as follows:

In addition to these accounts, Sigil's chart of accounts includes the following: Subscription Revenue, Licensing Revenue, Wages Expense, Advertising Expense, and Utilities Expense.
Required:
1. Analyze these effect of the following January 2010 transactions on the accounting equation using the format shown in the demonstration case.
a. Received $50,000 cash from customers for subscriptions earned in 2009.
b. Received $25,000 cash from Electronic Arts, Inc., for licensing revenue earned in the month of January 2010.
c. Purchased 10 new computer servers for $33,500; paid $10,000 cash and signed a note for the remainder owed.

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Cash Accounts Receivable Supplies Equipment Land Building 1,500,000 150,000 14,700 874,500 1,200,000 422,000 Accounts Payable Wages Payable Unearned Revenue Notes Payable McQuaid & Butler, Capital $ 108,000 34,500 73,500 60,000 3,885,200