Total Lawn Services earned

$125,000

of service revenue during

2018.

Of the

$125,000

earned, the business received

$101,000

in cash. The remaining amount,

$24,000,

was still owed by customers as of

December

31.

In addition,

Total Lawn Services

incurred

$82,000

of expenses during the year. As of

December

31,

$6,000

of the expenses still needed to be paid. In addition,

Total Lawn Services

prepaid

$11,000

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.

2. Determine the amount of service revenue and expenses for

using an accrual-basis accounting system.

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