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Question - Total Property Services earned $130,000 of service revenue during 2014. Of the $130,000 earned, the business received $104,000 in cash. The remaining amount, $26,000, was still owed by customers as of December 31. In addition, Total Property Services incurred $80,000 of expenses during the year. As of December 31, $15,000 of the expenses still needed to be paid. In addition, Total Property Services prepaid $9,000 cash in December 2014 for expenses incurred during the next year
1. Determine the amount of service revenue and expenses for 2014 using a cash basis accounting system.
2. Determine the amount of service revenue and expenses for 2014 using an accrual basis accounting system.
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