Actual problem:

SKL received a 24,000 cash advance as a retailer to provide legal services to a client. The contract called for SKL to provide the services during the six month period beginning on october 1 20x8. Based on the information alone determine the amount of the cash flow and the amount of the revenue SKL would report for the year 20x8 on their cash flow statement and income statement.

My thought process:

Would the cash flow include the whole $24,000 and then the income statement include the revenue of 12,000? Or do I split it up and do the 12,000 unearned revenue and then 12,000 revenue?