On November 1, 2020 Sparty's Snow Removal Service received pre-payment for snow removal services to be performed from December 1, 2020 until April 30, 2021 for $100,000. Sparty accounts for all receipts of cash as revenue at time of receipt. Which of the following is an effect on Sparty's Snow Removal Service's financial statements for the calendar year ended December 31, 2020 if they do not make any adjusting entries related to this service contract? Stockholders' Equity understated by $80,000 and Liabilities understated by $80,000. Stockholders' Equity overstated by $100,000 and Liabilities understated by $100,000. Stockholders' Equity overstated by $20,000 and Liabilities understated by $20,000. No effect, the financial statements would be correct. Stockholders' Equity overstated by $80,000 and Liabilities understated by $80,000. Here is the Stockholders' Equity section for Petroni Pizza Parlor for the year ended December 31, 2020. Based on what we have learned in this class, after reviewing this information which of the following must be TRUE? 2020 2019 3,000 Stockholders' Equity. Common Stock par value Contributed Capital in excess of par Retained Earnings Total Stockholders' Equity 3,000 9,000 24,800 9,000 23,100 36,800 35,100 Petroni Pizza Parlor bought back its own stock in 2020. Petroni Pizza Parlor did not declare dividends in 2020. Petroni Pizza Parlor's net income decreased from 2019 to 2020. Petroni Pizza Parlor reported positive net income in 2020