20 the adjusting entries needed as of January 31. (Record debits first a. Business receives $4.000 on January 1 for 10-month service contract for the period January 1 through October 31. (When the cash contract.) Date Accounts and Explanation Debit Credit Jan. 31 More Info - a. Business receives $4,000 on January 1 for 10-month service contract for the period January 1 through October 31. (Assume services are performed evenly each month throughout the term of the contract.) b. Total salaries for all employees is $3,000 per month. Employees are paid on the 1st and 15th of the month c. Work performed but not yet billed to customers for the month is $800. d. The company pays interest on its $24,000.7% note payablo of S140 on the first day of each month Print Done