Jack's Snow Removal Company received a cash advance of $6,000 on December 1, Year 1 to provide services during the months of December, January, and February. The year-end adjustment on December 31, Year 1, 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
Correct Answer:
Verified
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