2) Case Study: Rick Marsh, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. If Marsh's law firm prepares monthly financial statements. As an accountant, help Marsh to make his decision about revenue recognition, with explaination. 3) Question: Dareen Company records all prepayments in income statement accounts. At April 30, the trial balance shows Supplies expense $4,800, Service Revenue $10,500, and zero balances in related balance sheet accounts. Prepare the adjusting entries at April 30 assuming (a) $2,000 of supplies on hand. (b) $4,000 of service revenue should be reported as unearned