Question: Total Paint Services earned $120,000 of service revenue during 2016. Of the $120 000 earned the badness received $92,000 in cash The remaining amount. $28,000 was still owed by customers as of December 31. In addition 31. In addition, Total Paint Services incurred $80,000 of expenses during the year. As of December 31, $11,0000 of the expenses still needed to be paid. In addition, total Paint Services prepaid $7,000 cash in December 2016 for expenses incurred during the next year.
Determine the amount of service revenue and expenses for 2016 using a cash basis accounting system.
Determine the amount of service revenue and expenses for 2016 using an accrual basis accounting system.