Century Transport Inc. of Atlanta provides in-town parcel delivery services in addition to a full range of passenger services. Century engaged in the activities below during the current year: Required: 1. Prepare adjusting entries at December 31 for these four activities. If no entry is required, select "No entry required" for all accounts and leave associated amount boxes blank a. Century received $3,500 cash in advance from Rob's Department Store for an estimated 175 deliveries during December 2019 and January and February of 2020. The entire amount was recorded as unearned revenue when received. During December 2019, 50 deliveries were made for Rob's. Dec. 31 Unearned Service Revenue Service Revenue (Record earned revenue) b. Century operates several small buses that take commuters from suburban communities to the central downtown area of Atlanta. The commuters purchase, in advance, tickets for 50 one-way rides. Each 50-ride ticket costs $500. At the time of purchase, Century credits the cash received to unearned revenue. At year end, Century determines that 10,700 one-way rides have been taken. Dec. 31 Unearned Service Revenue Service Revenue (Record earned revenue) Feedback Check My Work 16. Revenue is recognized when it is earned, regardless of when cash is received. Accrued revenues represent previously unrecorded revenues that have been camed but for which no cash has yet been received A deferred (uneamed) revenue is a liability arising from the receipt of cash for which revenue has rot yet been earned. As the revenue is earned, the ability should be adjusted. c. Century operates several buses that provide transportation for the clients of a social service agency in Atlanta, Century bills the agency quarterly at the end of January, April, July, and October for the service performed that quarter. The contract price is $11,700 per quarter. Century follows the practice of recognizing revenue from this contract in the period in which the service is performed. Dec. 31 Accounts Receivable Service Revenue d. On December 23, Cabin Airlines chartered a bus to transport its marketing group to a meeting at a resort in southern Georgia. The meeting will be held during the last week in January 2020, and Cabin agrees to pay for the entire trip on the day the bus departs. At year end, none of these arrangements have been recorded by Century Dec. 31 No entry required No entry required (Record earned revenue) Feedback Check My Work 1d. Revenue is recognized when it is earned, regardless of when cash is received. Accrued revenues represent previously recorded revenues that have been eamed but for which no cash has yet been received A deferred (unearned) revenue is a liability arising from the receipt of cash for which revenue has not yet been earned. As the revenue is cames, the tably should be adjusted 2. Conceptual Connection: What would be the effect on revenue if the adjusting entries were not made? Understated by $