es In this module, you will learn how to account for common types of current liabilities, including accrued liabilities. Liabilities are initially reported at their cash-equivalent amount, which is the amount of cash that a creditor would accept to settle the liability immediately after the transaction or event occurred. Liabilities are increased whenever additional obligations arise (including interest) and are reduced whenever the company makes payments or provides services to the creditor. On August 1, Jackson Co. receives $12,000 cash for services to be provided over the next 12 months. August 1 Receipt of Cash December 31 Service Provided Deferred Revenue Cash Deferred revenue Deferred Revenue 12,000 5,000 Check my work D $12,000+ 12 months = $1,000 $1,000 per month x 5 months = $5,000 12,000 5,000 Adjusted balance of Deferred Revenue = $1,000 per month x 7 months = $7,000 Knowledge Check 01 On September 1, Year 1, the Central Illinois University ticket office sold $1,800,000 worth of season basketball t