Lakeshore Services recognizes revenue as services are performed; amounts received before performance are credited to Unearned Service Revenue. At January 1, 2025 the Unearned Service Revenue account had a credit balance of $4,500. The following events occurred during 2025.
| Date | Event |
|---|
| February 28 | Completed all of the services owed to customers at January 1 ($4,500). |
| May 1 | Received $18,000 cash for a 12-month service contract beginning May 1. Services are performed evenly over the contract period. |
| August 15 | Received a $6,400 cash advance for a consulting project. By December 31 the project was 75% complete (progress measured on an input basis). |
| October 1 | Billed and collected $5,200 cash for services performed during September. |
| December 31 | Recorded the adjusting entry for the May 1 service contract. |
| December 31 | Recorded the adjusting entry for the August 15 consulting project. |
Instructions:
- Journalize the 2025 transactions and the December 31 adjusting entries.
- Post to the Unearned Service Revenue ledger account (running balance format), starting from the January 1 balance.