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QS 3-11 (Algo) Adjusting for unearned (deferred) revenues LO P2 For each separate case below, follow the three-step process for adjusting the uneared revenue ability 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 to step 2 Assume no other adjusting entries are made during the year a. Tuo Cotectives $10,100 cash in advance for four months at evenly planned legal services beginning on October 1. To records it by debiting Cast and crediting Uneamed Revenue both for $10/100, now December 31, and Tochas provided legal Services as planned. What adjusting entry should To make to account for the work performed from October through December 312 Uncanned revenue Step 1: Determine what the current account balance equals Step 2. Determine what the current account balance should equal Step 3. Record the Documber 3 adjusting entry to get from top to 2 b. Caden started a new publication called Contest News. Its subscribers pay $24 to receive 12 monthly issues. With every new subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 new subscribers as of July 1. It sends Contest News to each of these subscribers every month from July through December Assuming no changes in subscribers, prepare the year-end journal entry that Caden must make as of December 31 to adjust the Subscription Revenue account and the Uneamed Subscription Revenue account Unearned subscription revenue 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