E9.6 Adjusting Entry Unearned Revenue Using the QBO Sample Company, Craig's Design and Landscaping Services, complete the following In November, Craig received $450.00 from Kate Whelan as a customer prepayment for design work. Craig recorded the entire $450.00 as Design Income. At the end of the accounting period on December 31, none of the design work had been provided to Kate, so the $450.00 had not been earned as of year end. Since it had not been earned, the $450.00 is a liability because Craig has an obligation to provide the design service or return the $450.00 to the customer. So an adjusting entry is needed to bring accounts up to date at December 31. 1. Complete the following table. Page 502 Increase or Decrease? Debit or Credit? Amount Account Design Income Unearned Revenue Account Type Income Liability $ $ 2. Plan Adjusting Journal Entry a. Complete the following to plan the adjusting Journal entry to enter in OBO Journal Entry #1 0 x