On 12/1/2020 Sally's Catering was paid in advance for services to be rendered at a June 2021 wedding Sally mistakenly recorded the event as a debit to Cash and a credit to Service Revenue at the time cash was received. If Sally's Catering Corp. makes no adjusting journal entry on 12/31/2020, what will the effect be on the Balance Sheet on 12/31/2020? Liabilities will be understated and Stockholders' Equity will be overstated. No effect Stockholders Equity will be overstated and Assets will be overstated. Assets will be overstated and Liabilities will be understated. Previous Page