This question deals with the items and the amounts that two entities, Mountain Services Inc. (Mountain) and City of Squamish (Squamish), should report in their financial statements.

1. On March 31, 2020, Mountain collected \(\$ 12,000\) in advance from Squamish, a client Under the contract, Mountain is obligated to provide consulting services for Squamish evenly during the year ended March 31, 2021. Assume you are Mountain Mountain's income statement for the year ended December 31, 2020, will report \( \qquad \) of \(\$\)

Mountain's balance sheet at December 31, 2020, will report \( \qquad \) of \(\$\) \( \qquad \)

2. Assume that you are Squamish. Squamish's income statement for the year ended December 31, 2020 , will report \( \qquad \) of \(\$\).

Squamish's balance sheet at December 31, 2020, will report \( \qquad \) of \(\$\)