Total Lawn Services earned $110,000 of service revenue during 2018, Of the $110,000 eamed, the business received $92,000 in cash. The remaining amount, $18,000, was still owed by customers as of December 31. In addition, Total Lawn Services incurred $68,000 of expenses during the year. As of December 31, $14,000 of the expenses still needed to be paid. In addition, Total Lawn Services prepaid $12,000 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 service revenue and expenses for 2018 using a cash basis accounting system. Cash basis Service revenue Expenses

Total Lawn Services earned $110,000 of service revenue during 2018, Of the $110,000 eamed, the business received $92,000 in cash. The remaining amount, $18,000, was still owed by customers as of December 31. In addition, Total Lawn Services incurred $68,000 of expenses during the year. As of December 31, $14,000 of the expenses still needed to be paid. In addition, Total Lawn Services prepaid $12,000 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 service revenue and expenses for 2018 using a cash basis accounting system. Cash basis Service revenue Expenses

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Total Lawn Services earned $150,000 of service revenue during 2018. Of the $150,000 earned, the business received $128,000 in cash. The remaining amount, $22,000, was still owed by customers as of December 31. In addition, Total Lawn Services incurred $88,000 of expenses during the year. As of December 31, $8,000 of the expenses still needed to be paid. In addition, Total Lawn Services prepaid $2,000 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 Service revenue Expenses
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Acme Inc. recognized the following transactions during their first year of business
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