apter $3$ Homework $($i$)$

$6$

Exercise $3-10$A $($Algo$)$ Prepaid vs$.$ unearned: the entity concept LO $3-2,3-3$

On May $1,$ Year $1,$ Josh Smith, attorney, accepted a $$36,000$ cash advance from his client, James Company, for services to be performed over the next twelve months.

its

Required

ellook

a$.$ Record the deferral and the related December $31,$ Year $1,$ adjustment for Josh Smith in an accounting equation.

Hint

b$.$ Record the deferral and the related December $31,$ Year $1,$ adjustment for James Company in an accounting equation.

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Complete this question by entering your answers in the tabs below.

Required A Required B

Record the deferral and the related December $31,$ Year $1,$ adjustment for James Company in an accounting equation.

Note: Do not round intermediate calculations. Enter any decreases to account balances with a minus sign. Round your final answers to the nearest whole number. Not all cells require entry.

$\backslash$table$[[$JAMES COMPANY $-$ Year $1],[$Event$,$Assets,,,$*,$Stockholders' Equity$],[$Cash$,$Prepaid Legal Fees,$=,$Liabillties,$*,$Common Stock, $,$Retained Earnings$],[$Cash paid,,,$=,,,,,],[$Service used,,,$-,,,,,]]$

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