REVENUE ADJUSTMENTS. Sentry Transport, Inc., of Atlanta provides intown parcel delivery services in addition to a full range of passenger services. Sentry engaged in the following activities during the current year:

a) Sentry received $1,200 cash in advance from Rich’s Department Store for an estimated 200 deliveries during December of the current year and January and February of next year. The entire amount was recorded as unearned revenue when received. During December, 60 deliveries were made for Rich’s.

b) Sentry operates several small buses that take commuters from suburban communities to the central downtown area of Atlanta. The commuters purchase, in advance, tickets for 50 one-way trips. Each 50-ride ticket costs $180. At the time of purchase, Sentry credits the cash received to unearned revenue. At year-end, Sentry estimates that revenue from 1,800 one-way rides has been earned.

c) Sentry operates several buses that provide transportation for the clients of a social service agency in Atlanta. Sentry bills the agency quarterly at the end of January, April, July, and October for the service. The contract price is $900 per quarter. Sentry follows the practice of recognizing revenue from this contract in the period in which the service is performed.

d) On December 23, Delta Airlines chartered a bus to transport its marketing group to a meeting at a resort in West Virginia. The meeting will be held during the last week in January of next year, and Delta agrees to pay for the entire trip on the day the bus departs. At year-end, none of these arrangements has been recorded by Sentry.

REQUIRED:

Prepare adjusting entries at December 31 for these four activities.