This exercise builds from a simple situation to a slightly more complex situation. Rogers, a wireless phone

Question:

This exercise builds from a simple situation to a slightly more complex situation. Rogers, a wireless phone service provider, collects cash in advance from customers. All amounts are in millions.
Assume Rogers collected $400 in advance during 2017 and at year-end still owed customers phone service worth $90.
Requirements
1. Show what Rogers will report for 2017 on its
• Income statement
• Use the same facts for Rogers as in Requirement 1. Further, assume Rogers reported unearned service revenue of $80 at the end of 2016.
Show what Rogers will report for 2017 on the same financial statements. Explain why your answer differs from your answer to Requirement 1.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...