During April services of $500 are provided for customers but cash will be collected in May. Required: With regard to the above situation: a. State whether it is a prepaid expense, unearned revenue, accrued revenue or an accrued expense, b. Assuming that the accounting period is 1 month, prepare the necessary adjusting entry on April 30. Answer a. This situation is a Prepaid expense Unearned Revenue Accrued Expense Accrued Revenue b. The necessary adjusting entry is the following: DATE ACCOUNT TITLES DEBIT CREDIT April 30 $ $