This question deals with the items and the amounts that two entities, Mountain Services Inc. (Mountain) and

Question:

This question deals with the items and the amounts that two entities, Mountain Services Inc. (Mountain) and City of Squamish (Squamish), should report in their financial statements.
1. On March 31, 2017, Mountain collected $12,000 in advance from Squamish, a client. Under the contract, Mountain is obligated to provide consulting services for Squamish evenly during the year ended March 31, 2017. Assume you are Mountain.
Mountain's income statement for the year ended December 31, 2017, will report of $ __________.
Mountain's at December 31, 2017, will report of $ _______.
2. Assume that you are Squamish. Squamish's income statement for the year ended December 31, 2017, will report ______________ of $ ____________.
Squamish's at December 31, 2017, will report of $ ____________.
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...