Cosmo Company experienced the following events and transactions during July: l01

a. Prepare journal entries (including any adjusting entries as of the end of the month) to record these events using the procedure of initially crediting the Unearned Fees account when payment is received from a customer in advance of performing services.

b. Prepare journal entries (including any adjusting entries as of the end of the month) to record these events using the procedure of initially crediting the Fees Earned account when payment is received from a customer in advance of performing services.

c. Under each method, determine the amount of earned fees reported on the income statement for July and the amount of unearned fees reported on the balance sheet as of July 31.

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July Received $2,000 cash in advance of performing work for Jill Dwyer. 6 Received $8,400 cash in advance of performing work for Lisa Poe. 12 Completed the job for Dwyer. 18 Received $7,500 cash in advance of performing work for Vern Hillsman. 27 Completed the job for Poe. 31 None of the work for Hillsman has been performed.