1. On April 1, Tarazi Company received $3,600 cash in advance for services to be rendered for one year starting on April 1. Tarazi debited Cash and credited Service Revenue for $3,600. On Decmeber 31 of the same year, the necessary adjusting entry includes:

credit to Service Revenue of $2,700

Debit to Unearned Service Revenue of $2,700

Debit to Service Revenue of $900

2. Which ONE of the following would be reported as an investing activity on a statement of cash flows?

Amount collected on accounts receivable

Amount borrowed

Amount paid as cash dividends

Amount collected from the sale of a building