At the end of the accounting period, the Legal Fees Earned account has a balance of $75,000. The accountant makes two adjustments--one to accrue unbilled legal fees earned of $2,500, and the other to reduce the Unearned Legal Fees liability account by $500.
After the adjustments are posted, the Legal Fees Earned account has a balance of

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The Legal Fees Earned account increases by $2,500 due to the accrual of unbilled legal fees, making the new total $77,500. Reducing the Unearned Legal Fees liability by $500 does not directly affect the balance of the Legal Fees Earned account; it recognizes that $500 of the liability has now been earned, so it indirectly increases the earned revenue by $500, making the final balance $78,000.

At the End of the Accounting Period, the Legal Fees