In its first year of operations, Lisa Corp. earned $49,500 in service revenue. Of that amount, $8,200 was on account and the remainder, $41,300, was collected in cash from customers. The company incurred various expenses totalling $29,800, of which $26,300 was paid in cash. At year end, $3,500 was still owing on account. In addition, Lisa prepaid $2,000 for insurance coverage that covered the last half of the first year and the first half of the second year. Lisa expects to owe $3,000 of income tax when it files its corporate income tax return after year end. (a)

In its first year of operations, Lisa Corp. earned $49,500 in service revenue. Of that amount, $8,200 was on account and the remainder. $41,300, was collected in cash from customers. The company incurred various expenses totalling $29,800, of which $26,300 was paid in cash. At ycar end, $3,500 was still owing on account In addition. Lisa prepaid \$2,000 for insurance coverage that covered the last half of the first year and the first half of the second year. Lisa expects to owe $3,000 of income tax when it fies its corporate income tax return after year end. In its first year of operations, Lisa Corp. earned $49,500 in service revenue. Of that amount, $8,200 was on account and the remainder. $41,300, was collected in cash from customers. The company incurred various expenses totalling $29,800, of which $26,300 was paid in cash. At ycar end, $3,500 was still owing on account In addition. Lisa prepaid \$2,000 for insurance coverage that covered the last half of the first year and the first half of the second year. Lisa expects to owe $3,000 of income tax when it fies its corporate income tax return after year end