If total liabilities decreased by $4,000, then stockholders' equity must have decreased by $4,000. assets must have decreased by $4,000, or stockholders' equity must have increased by $4.000. assets and stockholders' equity each increased by $2,000. assets must have increased by $4,000. On July 1, Bentley Books purchased goods with a cost of $500 on account from Aztec Inc. On July 7, Bentley paid the account in full. The combined effect of these two transactions on Bentley's tabular analysis is Assets Liabili ties + Stockholders' Equity Com- Retained Earn mon ings Accts. Cash Invento- + I Pay. + Stock + Rev. Exp. Decrease Cash $500 and increase Inventory $500. Decrease Cash $500 and increase Expenses $500. Increase Accounts Payable $500 and increases Inventory $500. Increase Accounts Payable $500 and increases Expenses $500. On December 1, Covington Legal Services Inc. collected a $40,000 retainer received from a client for legal services that will be performed ratably over the 5-month period December 1 through April 30. Use the following tabular analysis to determine the adjusting entry to be made on December 31. Stockholders' Equity Exprese Assets Accounts Cash Receivable 40,000 Liabilities Unearned Rescue 40,000 Common Stock Service Revenue Dec 1 Dec. 31 Adj Bal Decrease both Cash and Unearned Revenue by $8,000 Increase Service Revenue and Unearned Revenue by $9.000 Decrease Unearned Revenue and increase Service Revenue by $8,000. Increase Accounts Receivable and decrease Unearned Revenue by $10,000