For each separate case, record an adjusting entry (if necessary).
a. Lonzo Company receives $3,000 cash in advance for six months of recycling services on September 1 and records it by debiting
Cash and crediting Unearned Revenue for $3,000. Lonzo provides recycling services monthly as promised. Prepare the December
31 year-end adjusting entry that Lonzo records for the work performed from September 1 through December 31.
b. On October 20, Milwaukee Bucks sold a 10 game ticket package for $200 and recorded Unearned Revenue. By December 31, 4 of
the 10 games had been played. Record the December 31 year-end adjusting entry that the Bucks record for the 40% of revenue
earned on the $200 ticket package.
Prepare the December 31 year-end entry that companies record to adjust the Revenue and the Unearned Revenue accounts.