Stone Works is a paving stone installation business that operates from about April to October each year. The company has an outstanding reputation for the quality of its work and as a result pre-books customers a full year in advance. Customers must pay 40% at the time of booking and the balance on the completion date of the job. Stone Works records the 40% cash advance received from customers in the Unearned Revenues account. The December 31, 2020, balance sheet shows Unearned Revenues totalling $129,000. During 2021, $284,000 of cash was collected in total from customers: $205,000 regarding work completed during the year for customers who paid 40% down in 2020, and the balance representing the 40% prepayments for work to be done in 2022.

Required

1. Prepare the entry to record the collection of cash in 2021.

2. Determine the balance in Unearned Revenue at December 31, 2021.