Recording Transactions and Adjustments in the Financial Statement Effects Template $($FSET$)$

Deluxe Building Services offers custodial services on both a contract basis and an hourly basis.

On January $1,$ Deluxe collected $$70,350$ in advance on a six$-$month contract for work to be

performed evenly during the next six months. Assume Deluxe closes its book and issues financial

reports on a monthly basis.

Enter the following transactions in the financial statement effects template:

a$.$ The receipt of the $$70,350$ cash advance on January $1.$

b$.$ The adjustment on January $31$ for the contract work done during January.

c$.$ The adjustment on January $31$ for $63$ hours of unbilled custodial work. The billing rate is

$$27$ per hour.