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: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter3: Processing Accounting Information

Section: Chapter Questions

Problem 3.12MCE: Determining an Ending Account Balance Jessies Accounting Services was organized on June 1. The...

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Determining an Ending Account Balance Jessies Accounting Services was organized on June 1. The company received a contribution of $1,000 from each of the two principal owners. During the month, Jessies Accounting Services provided services for cash of $1,400 and services on account for $450, received $250 from customers in payment of their accounts, purchased supplies on account for $600 and equipment on account for $1,350, received a utility bill for $250 that will not be paid until July, and paid the full amount due on the equipment. Use a T account to determine the companys Cash balance on June 30.