in its first year of operations sherdian company regonized 30,000 in service revenue, 7,200 of which was on account and still oustanding at the year end,the remaining 22,800 was received cash in customers. the company incurred operating expense of 16,600. of those expenses 13,520 were paid in cash 3,080 was still owed on account at year end. in addition, sherdian prepaid 2,650 for insurance coverage that would not be used till the second year of operations