On December 1,Year 1,Jack's Snow Removal Company Received $6,000 of Cash

Multiple Choice

On December 1,Year 1,Jack's Snow Removal Company received $6,000 of cash in advance from a customer and promised to provide services for that customer during the months of December,January,and February.How will the Year 1 year-end adjustment to recognize the partial expiration of the contract impact the elements of the financial statements model?

A) Total assets will increase by $2,000.
B) Equity will increase by $2,000.
C) Total liabilities will increase by $2,000.
D) Total assets will increase by $2,000 and equity will increase by $2,000.