Robert Shapiro, a lawyer, received $84,000 on October 1 to represent a client in real estate negotiations

Question:

Robert Shapiro, a lawyer, received $84,000 on October 1 to represent a client in real estate negotiations over the next 12 months.

1. Record the entries required in Shapiro’s records on October 1 and at the end of the fiscal year, December 31.

2. How would this transaction be reflected on the income statement and balance sheet on December 31?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...