On October 1, 2016, Josh Smith, attorney, accepted an $10,800 cash advance from his client, James Company, for services to be performed over the next six months.

Record the deferral and the related December 31, 2016, adjustment for James Company in an accounting equation. (Do not round intermediate calculations. Enter any decreases to account balances with a minus sign.)

Event	Assets	Assets	=	Liabilities	+	Stockholder's Equity	+	Stockholder's Equity
	Cash	Prepaid Legal Fees	=			Common Stock	+	Retained earnings
Cash Paid
Service Used