On April 1, $800 was received in advance for a service to be performed over 2 months. During April half of the service ($400) was performed. Required: With regard to the above situation: a. State whether it is a prepaid expense, unearned revenue, accrued revenue or an accrued expense. b. Assuming that the accounting period is 1 month, prepare the necessary adjusting entry on April 30. Answer a. This situation is a Prepaid expense Unearned Revenue Accrued Expense Accrued Revenue b. The necessary adjusting entry is the following: DATE ACCOUNT TITLES April 30 DEBIT CREDIT $