1. On December 1, Year 1, Jack's Snow Removal Company received $13,800 of cash in advance from a customer and promised to provide services for that customer during the months of December, January, and February. How will the Year 1 year-end adjustment to recognize the partial expiration of the contract impact the elements of the financial statements model?

   		Total assets will increase by $4600
   		Total liabilities will increase by $4600
   		Equity will increase by $4600
   		Equity will increase by $4600 and Total assets will increase by $4600