On June 1, 2013, Speed Secretarial Co. received two one-year contracts to perform services. Also on June 1, Speed Secretarial Co. received a deposit of half of the future revenue in cash for each contract. It will receive the balance upon completion of the contracts. The following information is available for the year ended December 31, 2013:
Total Contract
Contract #1 ........ $30,000
Contract #2 ........ $16,500
a. Journalize the entry to record when the cash is received on June 1, 2013.
b. Journalize the adjusting entry to record the revenue earned at year-end.