For each separate case below, follow the three-step process for adjusting the unearned revenue liability account at December 31.

Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.

1. Tao Co. receives $10.000 cash in advance for 4 months of legal services on October 1, 2013, andrecords it by debiting Cash and crediting Unearned Revenue both for $10,000. It is now December31 , 2013, and Tao has provided legal services as planned. What adjusting entry should Tao make toaccount for the work performed from October 1 through December 31, 2013?

a: Determine what the current account balance equals

b.Determine what the current account balance should equal

2. Caden started a new publication called Contest News. Its su bsc ribers pay $24 to receive 12issues. With every new subscriber, Caden debits Cash and credits Unearned Subscription Revenuefor the amounts received. The company has 100 new subscribers as of July 1, 2013. It sends ContestNews to each of these subscribers every month from July through December. Assuming no changesin subscribers, prepare the journal entry that Caden must make as of December 31 , 2013. to adjustthe Subsc ription Revenue account and the Unearned Subscription !Revenue account.

a: Determine what the current account balance equals

b.Determine what the current account balance should equal