Splish Splash Art is a centre that offers children's music and dance lessons. Splish Splash prepares annual financial statements and has a December 31, 2020, year-end.

1. On September 1, Splish Spash Art collects $20,300 cash for dance lessons running from September 1, 2020 to December 31, 2020.
2. On October 1, Splish Splash Art collects $6,600 cash in advance from the Music Box Inc. ($3,300 per month) to rent its performance stage for the full month of December 2020 and January 2021.
3. On October 1, 2020, Splish Splash Art collects $10,400 cash for four months of music lessons for a local private school. The lessons run from October 1, 2020 to January 31, 2021.

Required:

For the above transactions, record the initial journal entry and the adjusting entry required on December 31, 2020.

transaction lists are as follows

a.

1

• Record cash received in advance for future dance lessons.
• 2
• Record annual adjusting entries for earned revenue received in advance.

b.

• 1
• Record the cash received for stage rental.
• 2
• Record the earned portion of revenue received in advance.

c.

• 1
• Record cash received in advance for future music lessons.
• 2
• Record the earned portion of revenue received in advance.