Current Attempt in Progress

In its first year of operations, Sunland Company recognized $$33,800$ in service revenue, $$6,700$ of which was on account and still outstanding at year$-$end. The remaining $$27,100$ was received in cash from customers.

The company incurred operating expenses of $$19,600.$ Of these expenses, $$12,640$ were paid in cash; $$6,960$ was still owed on account at year$-$end. In addition, Sunland prepaid $$3,250$ for insurance coverage that would not be used until the second year of operations.