Property Management Company manages apartment buildings for various owners who wish to be relieved of this responsibility. Among the ledger accounts in use are Cash, Unearned Management Fees, Management Fees, and Management Fees Re¬

ceivable. On December 1, the company received a check for $12,000 from a client, Susan Hart, who was leaving for a six-month stay abroad. This check represented payment in advance for management of Hart’s real estate properties during the six months of her absence. Explain how this transaction would be recorded, the adjust¬

ment, if any, to be made at December 31, and how this information would be shown in the year-end financial statements. LO8