QS 3-10 Unearned (deferred) revenues adjustments LO P For each separate case below, follow the three-step process for adjusting the unearned revenue liability account at December 3 Step 1 Determine what the current account balance equals. Step 2 Determine what the current account balance should equal. Step 3 Record the December 31 adjusting entry to get from step 1 to step 2 Assume no other adjusting entries are made during the year a. The Krug Company collected $6,000 rent in advance on November 1, debiting Cash and crediting Unearned Rent Revenue. The ant was paying 12 months' rent in advance and occupancy began November 1 Unearned rent revenue Step 1: Determine what the current account balance equals Step 2: Determine what the current account balance should equal Step 3: Record the December 31 adusting entry to get from step 1 to step 2 The company charges $T5 per month to spray a house for insects. A customer paid $300 on October 1 in advance for four reatments, which was recorded with a debit to Cash and a credit to Unearned Services Revenue. At year-end, the company has lied three treatments for the customer Unearned services revenue Step 1: Determine what the current account balance equals Step 2: Determine what the current account balance should equal 1O of 15 ??? Net> rev search ome