LO 13-1 Exercise 13-11B Recording unearned revenue and identifying its effect on financial statements James Jones...

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LO 13-1 Exercise 13-11B Recording unearned revenue and identifying its effect on financial statements James Jones received a $90,000 cash advance on March 1, Year 1, for legal services to be performed in the future. Services were to be provided for a one-year term beginning March 1, Year 1. Required a. Record the March 1 cash receipt in T-accounts. b. Record in T-accounts the adjustment required as of December 31, Year 1. c. Show the preceding transaction and related adjustment in a horizontal statements model like the following one: Balance Sheet Income Statement Assets = Liab. + Stk. Equity Rev. - Exp. = Net Inc. Statement of Cash Flows d. Determine the amount of net income on the Year 1 income statement. What is the amount of net cash flow from operating activities for Year 1? e. What amount of unearned revenue would Jones report on the December 31, Year 1, balance sheet? LO 13-1 Exercise 13-11B Recording unearned revenue and identifying its effect on financial statements James Jones received a $90,000 cash advance on March 1, Year 1, for legal services to be performed in the future. Services were to be provided for a one-year term beginning March 1, Year 1. Required a. Record the March 1 cash receipt in T-accounts. b. Record in T-accounts the adjustment required as of December 31, Year 1. c. Show the preceding transaction and related adjustment in a horizontal statements model like the following one: Balance Sheet Income Statement Assets = Liab. + Stk. Equity Rev. - Exp. = Net Inc. Statement of Cash Flows d. Determine the amount of net income on the Year 1 income statement. What is the amount of net cash flow from operating activities for Year 1? e. What amount of unearned revenue would Jones report on the December 31, Year 1, balance sheet?