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Jack's Snow Removal Company Received a Cash Advance of $6,000

Question 29

Multiple Choice

Jack's Snow Removal Company received a cash advance of $6,000 on December 1,2016 to provide services during the months of December,January,and February.The 2016 year-end adjustment to recognize the partial expiration of the contract will


A) increase assets by $2,000
B) increase equity by $2,000
C) increase liabilities by $2,000
D) increase assets by $2,000 and increase equity by $2,000

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