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Total Lawn Services earned $110,000 of service revenue during 2018. Of the $110,000 earned, the business received $90,000 in cash. The remaining amount, $20,000, was
Total Lawn Services earned $110,000 of service revenue during 2018. Of the $110,000 earned, the business received $90,000 in cash. The remaining amount, $20,000, was still owed by customers as of December 31. In addition, Total Lawn Services incurred $72,000 of expenses during the year. As of December 31, $13,000 of the expenses still needed to be paid. In addition, Total Lawn Services prepaid $9,000 cash in December 2018 for expenses incurred during the next year. 1. Determine the amount of service revenue and expenses for 2018 using a cash-basis accounting system 2. Determine the amount of service revenue and expenses for 2018 using an accrual-basis accounting system. 1. Determine the amount of service revenue and expenses for 2018 using a cash-basis accounting system Cash basis Service revenue Expenses 2. Determine the amount of service revenue and expenses for 2018 using an accrual-basis accounting system. Accrual basis Las Service revenue Expenses
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