S3-9. (Learning Objective 2: Applying the revenue recognition principles and matching concept) During 20X6, Litblue Airlines paid salary expenses of 39.7 million. At December 31, 20X6, Litblue accrued salary expenses of 3.1 million. Litblue then paid 2.3 million to its employees on January 3, 20X7, the company's next payday after the end of the 20X6 year. For this sequence of transactions, show what Litblue would report on its 20X6 Income Statement and on its Balance Sheet at the end of 20X6. S3-14. (Learning Objective 3: Adjusting the accounts) Richmond, Inc., collects cash from customers two ways: a. Accrued revenue. Some customers pay Richmond after Richmond has performed services for the customer. During 20X6, Richmond performed services worth $75,000 on account and later received cash of $50,000 on account from these customers. b. Unearned revenue. A few customers pay Richmond in advance, and Richmond later performs the service for the customer. During 20X6, Richmond collected $8,000 cash in advance and later earned $3,600 of this amount. Journalize for Richmond a. Earning service revenue of $75,000 on account and then collecting $50,000 on account. b. Receiving $8,000 in advance and then earning $3,600 as service revenue