or each separate cose below, follow the three-step process for adusting the unearned revenu uity sccount of Decembe tep 1. Determine what the current account balance equals tep 2 Determine what the current account balance should equal. tep 3: Record the December 31 adjusting entry to get from step 1 to step 2 Assume no other adjusting entries are made during the year a. Tao Co. receives $10,000 cash in advance for four months of evenly planned legal services beginning on October 1. Tad records it by debiting Cash and crediting Unearned Revenue both for $10,000. It is now December 31, and Tao has provided Legal services as planned. What adjusting entry should to make to account for the work performed from October throw December 317 Debit Car 10.000 Debit Step 1 Determine what the current account balance equals Step 2 Determine what the current account balance should equal 5.000 Credit to step 2 Step 3 Record the December 31 adjusting entry to get from step Adjusting Entry nearned revenue Legal services revenue 5.000 b. Caden started a new pucation called Contest News. Its subscribers pay $24 to receive 12 monthly issues. With every new subscriber, Caden debes Cash and credits Uneamed Subscription Revenue for the moints received. The company has 100 new subscribers as of July 1. It sends Contest News to each of these subscribers every month from July through December. Assume no changes in subscribers, prepare the year end journal entry that Caden must make as of December 31 to at the Subcripbon Revenue account and the Unearned Subscription Revenue account Unearned subscription venue Step 1 Determine what the current account balance Step 2. Determine what the current account balance should equal Step 3 Record the December 31 adjusting entry to get from step 1 to step 2