Analyze each of the following scenarios.

On December $1,20$X$1,$ ABC Company received an advance payment on a job and recorded the following entry.

At December $31,20$X$1,$ $$2,500$ of the work was still unearned.

a$)$ What amount of services revenue should the company include on their December $31$ st income statement for this transaction?

b$)$ What amount of unearned revenue should the company include on their December $31$st balance sheet?

c$)$ What adjusting entry would be required on December $31$ st to update the balance in unearned fees?