In its first year of operations, Carla Vista Co. recognized $29,800 in service revenue, $7,800 of which was on account and still outstanding at year-end. The remaining $22,000 was received in cash from customers. The company incurred operating expenses of $18,300. Of these expenses $13,700 were paid in cash; $4,600 was still owed on account at year-end. In addition, Carla Vista prepaid $3,260 for insurance coverage that would not be used until the second year of operations. Calculate the first year's net earnings under the cash basis of accounting, and the first year's net earnings under the accrual basis of accounting Cash Basis $ Accrual Basis $ Net Income eTextbook and Media Which basis of accounting (cash or accrual) provides more useful information for decision-makers? e Textbook and Media The ledger of Melmann Company includes the following accounts a. b. Prepaid Insurance Depreciation Expense. Unearned Service Revenue. Interest Payable c. d. Explain why each account may require adjustment. , ? I : 3 | 1 1 E 11 IM . 1 T. O Word(s) On July 1, 2022, Sunland Company pays $20,500 to Ivanhoe Company for a 2-year insurance contract. Both companies have fiscal years ending December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Ivanhoe Company. Ivanhoe uses the accounts Unearned Service Revenue and Service Revenue. (Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts Post the entry on July 1 and the adjusting entry on December 31 for Ivanhoe Company. (Post entries in the order of journal entries presented in the previous part.) Unearned Service Revenue Service Revenue e Textbook and Media