On July 1, Cooper Corporation received $20,000 from Smith Industries in exchange for services performed. What accounting entries should Cooper make to record this event, and why? Cooper should record a $20,000 increase in revenue along with a $20,000 increase in cash, because this way the firm's retained earnings will increase by the same amount as its assets. Cooper should record a $20,000 increase in revenue along with a $20,000 increase in cash, because this way the firm's liabilities will increase by the same amount as its assets. Cooper should record a $20,000 increase in unearned service revenue along with a $20,000 increase in cash, because this way the firm's retained earnings will increase by the same amount as its assets. Cooper should record a $20,000 increase in unearned service revenue along with a $20,000 increase in cash, because this way the firm's liabilities will increase by the same amount as its assets.

On July 1, Cooper Corporation received $20,000 from Smith industries in exchange for services performed. What accounting entries should Cooper make to record this event, and why? Cooper should record a $20,000 increase in revenue along with a $20,000 increase in cash, because this way the firm's retained earnings will increase by the same amount as its assets. Cooper should record a $20,000 increase in revenue along with a $20,000 increase in cash, because this way the firm's liabilities will increase by the same amount as its assets. Cooper should record a $20,000 increase in unearned service revenue along with a $20,000 increase in cash, because this way the firm's retained earnings will increase by the same amount as its assets. Cooper should record a $20,000 increase in uncarned service revenue along with a $20,000 increase in cash, because this way the firm's liabilities will increase by the same amount as its assets