(1) The company received $3,200 on January 1 for a 10-month service contract for the period January 1 through October 31. (Assume services are performed eve contract.) Date Accounts and Explanation Debit Credit Jan. 31 3200 unearned revenue Cash collected for future services (3) The company pays interest on its $24,000, 7% note payable of $140 on the first day of each month Date Accounts and Explanation Debit Credit Jan. 31