Intermediate Accounting 1 Chapter 1 #01 - T-R - Handout 1. The Highland Company had the following transactions during the year: a. On May 1, paid for 2 years of insurance totaling $72,000 b. On June 1, paid for 12 months of rent totaling $24,000 c. On September 1, received 12 months' worth of revenue in advance from Customer A totaling $120,000 d. On December 1, received 12 months' worth of revenue in advance from Customer B totaling $60,000 i. Under the cash method, calculate the following 1. What is total revenue in year 1? 2. What is total expense for year 1? 3. What is total revenue in year 2? 4. What is total expense for year 2? ii. Under the accrual method, calculate the following 1. What is total revenue in year 1? 2. What is total expense for year 1? 3. What is total revenue in year 2? 4. What is total expense for year 2