Link Back to Chapter 3 (Revenue Principle), Forbes Painting Company wishes to expand and has borrowed $2 million. As a condition for making this loan, the bank requires that Forbes maintain a current ratio of at least 1.50. Business has been good but not great. Expansion costs have brought the current ratio down to 1.40 at December 15. Jacob Forbes, owner of the company, is considering what might happen if the business reports a current ratio of 1.40 to the bank. One course of action for Forbes is to record in December some revenue that the business will earn in January of next year. The contract for this job has been signed. Required 1. Journalize the revenue transaction, and indicate how recording this revenue in December would affect the current ratio. 2. State whether it is ethical to record the revenue transaction in December. Identify the accounting principle relevant to this situation. 3. Propose a course of action that is ethical for Forbes.