Jack's Snow Removal Company received a cash advance of $9,900 on December 1, Year 1 to provide services during the months of December, January, and February. The year-end adjustment on December 31, Year 1, to recognize the partial expiration of the contract will:

Jack's Snow Removal Company received a cash advance of $9,900 on December 1, Year 1 to provide services during the months of December, January, and February. The year-end adjustment on December 31, Year 1, to recognize the partial expiration of the contract will:

increase liabilities by $3,300

increase equity by $3,300

increase assets by $3,300

increase assets by $3,300 and increase equity by $3,300