Question #1 (26 marks)

At the end of 2017, the accounting records of Besotted Company showed the following data:

	2017	2018	2019
Service revenue:
Cash	$70,000	$110,000
On credit	56,000	34,000
2019 revenue collected in advance of 2019 (not Included in the $110,000)		10,000
Additional cash collections for:
2017 service revenue	16,000	8,000
2018 service revenue		12,000	$4,000
Expenses:
Paid in cash	44,000	64,000
On credit	6,000	18,000
2019 expenses paid in advance of 2019 (not Included in the $64,000)		10,000
Additional cash payments for:
2017 expenses	4,000	2,000
2018 expenses		8,000	8,000

Required:

Complete the following tabulation:

	2017	2018
Service revenue that would be reported:
Accrual basis	$	$
Cash basis	$	$
Expenses that would be reported:
Accrual basis	$	$
Cash basis	$	$

Please show calculations here: