Waldemar Gott, a lawyer, received $72,000 on October 1 to represent a client in real estate negotiations

Question:

Waldemar Gott, a lawyer, received $72,000 on October 1 to represent a client in real estate negotiations over the next 12 months.
1. Record the entries required in Gott's records on October 1 and at the end of the fiscal year, December 31.
2. How would this transaction be reflected on the income statement and on December 31?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...