Costanza Company experienced the following events and transactions in July. The company has the following partial chart of accounts: Cash;
Accounts Receivable; Unearned Revenue; and Services Revenue.

a. Prepare journal entries (including any adjusting entries as of the July 31 month-end) to record these events using the procedure of initially crediting the Unearned Revenue account when payment is received from a customer in advance of performing services.

b. Prepare journal entries (including any adjusting entries as of the July 31 month-end) to record these events using the alternative procedure of initially crediting the Services Revenue account when payment is received from a customer in advance of performing services.

c. Under each method, determine the amount of Services Revenue reported on the income statement for July and the amount of Unearned Revenue reported on the balance sheet as of July 31.

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July 1 6 12 18 31 Received $3,000 cash in advance of performing work for Vivian Solana. Received $7,500 cash in advance of performing work for Iris Haru. Completed the job for Solana. Received $8,500 cash in advance of performing work for Amina Jordan. (a) Completed the job for Haru. (b) None of the work for Jordan has been performed.