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. Assume no other adjusting entries are made during the year. a. Tao Co. receives $11,800 cash in advance for four months of evenly planned legal services beginning on Oct records it by debiting Cash and crediting Unearned Revenue both for $11,800. It is now December 31, and Tao legal services as planned. What adjusting entry should Tao make to account for the work performed from Octo through December 31? Debit or Credit? Unearned Step 1: Determine what the current account balance equals. $ $ 11,800 Credit 8,900 Step 2: Determine what the current account balance should equal. $ 2,900 Credit Credit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Adjusting Entry Debit Unearned revenue 8,900 Legal services revenue 8,900