Nanofone, the British wireless phone service provider, collects cash in advance from customers. All amounts are in millions of pounds sterling (£), the British monetary unit. Assume Nanofone collected 460 in advance during 2010 and at year end still owed customers phone service worth 110.

Requirements
1. Show what Nanofone will report for 2010 on its income statement and balance sheet.
2. Use the same facts for Nanofone as in Requirement 1. Further, assume Nanofone reported unearned service revenue of 55 back at the end of 2009. Show what Nanofone will report for 2010 on the same financial statements. Explain why your answer here differs from your answer to Requirement 1.