QS $3-11($Algo$)$ Adjusting for unearned $($deferred$)$ revenues LO P$2$

For each separate case below, follow the three$-$step process for adjusting the unearned revenue liability account at Decembe

Step $1$: Determine what the current account balance equals.

tep $2$: Determine what the current account balance should equal.

tep $3$: Record the December $31$ adjusting entry to get from step $1$ to step $2.$

Assume no other adjusting entries are made during the year.

a$.$ Tao Company receives $$11,200$ cash in advance for four months of evenly planned legal services beginning on October $1.$ Tao records it by debiting Cash and crediting Unearned Revenue both for $$11,200.$ It is now December $31,$ and Tao has provided egal services as planned. What adjusting entry should Tao make to account for the work performed from October $1$ through pecember $31?$

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Prey

of $32$

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