Schrand Services offers janitorial services on both a contract basis and an hourly basis. On January 1, Schrand collected $62,640 cash in advance on a sixmonth contract for work to be performed evenly during the next six months. a. Prepare the entry on January 1 to reflect the receipt of $62,640 cash for contract work; use the financial statement effects template. b. Adjust the appropriate accounts on January 31 for the contract work done during January; use the financial statement effects template. c. At January 31, a total of 72 hours of hourly rate janitor work was performed but unbilled. The billing rate is $19 per hour. Prepare the accounting adjustment needed on January 31 using the financial statement effects template. (The firm uses the accounts receivable account to reflect revenue earned but not yet billed.) Prepare a journal entry for each of parts a, b, and c.

	Account	Debit	Credit
a.	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockCost of Goods SoldDividendsEquipmentFuel ExpenseInsurance ExpenseInventoriesNotes PayablePrepaid InsurancePrepaid Van LeaseRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockCost of Goods SoldDividendsEquipmentFuel ExpenseInsurance ExpenseInventoriesNotes PayablePrepaid InsurancePrepaid Van LeaseRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A	Answer	Answer
b.	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockCost of Goods SoldDividendsEquipmentFuel ExpenseInsurance ExpenseInventoriesNotes PayablePrepaid InsurancePrepaid Van LeaseRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockCost of Goods SoldDividendsEquipmentFuel ExpenseInsurance ExpenseInventoriesNotes PayablePrepaid InsurancePrepaid Van LeaseRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A	Answer	Answer
c.	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockCost of Goods SoldDividendsEquipmentFuel ExpenseInsurance ExpenseInventoriesNotes PayablePrepaid InsurancePrepaid Van LeaseRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A	Answer	Answer
	AnswerAccounts PayableAccounts ReceivableAdvertising ExpenseCashCommon StockCost of Goods SoldDividendsEquipmentFuel ExpenseInsurance ExpenseInventoriesNotes PayablePrepaid InsurancePrepaid Van LeaseRent RevenueRetained EarningsSalaries ExpenseSalaries PayableService Fees EarnedSuppliesSupplies ExpenseUnearned Rent RevenueUnearned Service FeesWages ExpenseN/A	Answer	Answer