Transaction Analysis and Adjustments

Deluxe Building Services offers janitorial services on both a contract basis and an hourly basis. On January $1,$ Deluxe collected $$14,070$ in advance on a six$-$month contract for work to be performed evenly during the next six months.

Using the Transaction Analysis Template, determine the financial statement effect of the following:

a$.$ The January $1$ st receipt of $$14,070$ for contract work.

b$.$ The adjustment to be made on January $31,$ for the contract work done during January.

c$.$ At January $31,$ a total of $21$ hours of hourly rate janitor work was unbilled.

The billing rate is $$19$ per hour

Provide the accrual entries needed on January $31.($Note: The firm uses the account Fees Receivable to reflect amounts due.$)$ Note: Use negative signs with answers, when appropriate.