A customer s prepayment for services not yet rendered is initially recorded as unearned revenue (a liability). Then, at the end of the accounting period, the unearned revenue is moved from the balance sheet to the income statement. This is an example of the revenue recognition principle. (True/False) Record the effect of each of the following transactions for Hoar Company using the financial statement effect template. Wages of $ 1,000 are earned by employees but not yet paid. $3,000 of inventory is purchased on credit. Inventory purchased in transaction b is sold for $5,000 on credit