Olney Cleaning Company had the following items that require adjustment at year-end: a. For one cleaning contract, $17,900 cash was received in advance. The cash was credited to Unearned Service Revenue upon receipt. At year-end, $3,280 of the service revenue was still unearned. b. For another cleaning contract, $15,060 cash was received in advance and credited to Unearned Service Revenue upon receipt. At year-end, $3,720 of the services had been provided. Required: 1. Prepare the adjusting journal entries needed at December 31. Dec. 31 24 Unearned Service Revenue Service Revenue (Record earned revenue) Dec. 31 Unearned Service Revenue Service Revenue (Record earned revenue) Feedback Check My Work 2. What is the effect on the financial statements if these adjusting entries are not made? If these adjusting entries were not made, revenue would be understated and liabilities would be overstated . This would result in an understatement of net 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