Chain Company signed a three year contract to perform consulting services for a local manufacturer on September 1, 2008. Chain received $45,000 cash as an advance payment for these services and agreed that the work begin immediately.

What is the amount of the adjusting entry that needs to be done at the end of the 2008 and 2009 years?

A.$3,750 / $15,000

B. $45,000 / $0

C. $5,000 / $15,000

D. $0 / $45,000