Question: Wolfe & Wolfe collected $9,000 from a customer on April 1 and agreed to provide legal services during the next three months. Wolfe & Wolfe

Wolfe & Wolfe collected $9,000 from a customer on April 1 and agreed to provide legal services during the next three months. Wolfe & Wolfe expects to provide an equal amount of services each month.

Required

1. Identify and analyze the transaction for the receipt of the customer deposit on April 1.

2. Identify and analyze the adjustment on April 30.

3. What will be the effect on net income for April if the adjustment in (2) is not recorded?

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