Rebecca Thompson started a small local law firm to provide various consulting services to clients. Her law firm experienced the following events in Year $1,$ its first year of operation:

Borrowed $$80,000$ cash from a local bank to assist in start$-$up operations.

On May $1,$ Year $1,$ the firm collected $$30,000$ cash for consulting services it agreed to provide during the coming year.

On December $31,$ Year $1,$ the firm adjusted the accounts to reflect the amount of consulting service revenue recognized in Year $1.$