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Total Paint Services earned $110,000 of service revenue during 2021. Of the $110,000 earned, the business received $88,000 in cash. The remaining amount, $22,000,
Total Paint Services earned $110,000 of service revenue during 2021. Of the $110,000 earned, the business received $88,000 in cash. The remaining amount, $22,000, was still owed by customers as of December 31. In addition, Total Paint Services incurred $88,000 of expenses during the year. As of December 31, $6,000 of the expenses still needed to be paid. In addition, Total Paint Services prepaid $8,000 cash in December 2021 for expenses incurred during the next year. a. Determine the amount of service revenue and expenses for 2021 using a cash-basis accounting system. b. Determine the amount of service revenue and expenses for 2021 using an accrual-basis accounting system. a. Determine the amount of service revenue and expenses for 2021 using a cash-basis accounting system. Cash basis Service revenue Expenses
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