You are the controller for an architectual firm whose accounting year ends on December. As part of the management team, you receive a year-end bonus directly related to the firms' earnings for the year. One of your duties is to review that transactions recorded by the bookkeepers. A new bookkeeper recorded the receipt of $10,000 in cash as an increase in cash and an increase in service revenue.

The $10,000 is a deposit and the bookkeeper explains to you that the firm plans to provide the services to the client in March of the following year.

Required:

a. Did the bookkeeper correctly record the client's deposit?  Explain.

b. What would you do as controller for the firm?  Do you have a responsibility to do anything to correct the books? Explain.