PLEASE explain each step

Listed below are a few transactions and events of Yacht Company.

1.	Yacht Company records an adjusting entry for $120,000 of previously unrecorded cash sales (costing $60,000) and its sales taxes at a rate of 6%.
2.	The company earned $24,000 of $60,000 previously received in advance for services.

Prepare any necessary adjusting entries at December 31, 2011, for Yacht Companys year-end financial statements for each of the above separate transactions and events. (Omit the "$" sign in your response.)

	General Journal	Debit	Credit
1.	(Click to select)Unearned services revenueCost of goods soldCashSalesMerchandise inventorySales taxes payableEarned services revenueNotes payable
	(Click to select)Unearned services revenue Merchandise inventoryEarned services revenueCost of goods soldCashSales taxes payable SalesNotes payable
	(Click to select)Sales taxes payableCost of goods soldNotes payable Sales Merchandise inventoryEarned services revenueUnearned services revenueCash
	(Click to select)Unearned services revenueSalesSales taxes payableEarned services revenueCashCost of goods soldMerchandise inventoryNotes payable
	(Click to select)Unearned services revenueMerchandise inventoryNotes payableCashSalesEarned services revenueSales taxes payableCost of goods sold
2.	(Click to select)Notes payableUnearned services revenueCost of goods soldMerchandise inventoryCashSalesSales taxes payableEarned services revenue
	(Click to select)Earned services revenueUnearned services revenueSales taxes payableCost of goods soldNotes receivableNotes payableCashMerchandise inventory