Lee maintains the accounting records of Armada Company on a cash basis.During2019, Armada Company collected $145,000 from its customers and paid $54,000 in expenses. The following were provided in Lee's preparation of an accrual basis income statement:

Account	Increase (Decrease)
Accounts receivable	10,000
Unearned service revenue	5,000
Accrued expenses	(7,000)
Prepaid expenses	3,000

1. What is the amount of service revenue to be reported in 2019 under accrual basis of accounting?

2. What is the amount of operating expenses to be reported in 2019 under accrual basis of accounting?