Olney Cleaning Company had the following items that require adjustment at year-end: a. For one cleaning contract, $9,500 cash was received in advance. The cash was credited to Unearned Service Revenue upon receipt. At year-end, $3,020 of the service revenue was still unearned. b. For another cleaning contract, $12,720 cash was received in advance and credited to Unearned Service Revenue upon receipt. At year-end, $3,800 of the services had been provided Required: 1. Prepare the adjusting entries needed at December 31. Dec. 31 Unearned Service Revenue 6,480 Service Revenue 6,480 (Record earned revenue) Dec. 31 Unearned Service Revenue 3,800 Service Revenue 3,800 (Record earned revenue) 2. What is the effect on the financial statements if these adjusting entries are not made? and liabilities would be overstated This would result in an understatement of net If these adjusting entries were not made, revenue would be understated income and an understatement of shareholders' equity. 3. What is the balance in Unearned Service Revenue at December 31 related to the two cleaning contracts