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Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answers to the questions. The Blue Nile Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $1,970 for six months of advertising. Blue Nile Law Firm recorded $1,970 in the Prepaid Advertising account. If Blue Nile Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for the two months ending February 28? Enter this value as a positive number. Secure ome provides house or people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. As of the end of the year, Secure Home has collected $80 from cash-paying customers. Secure Home's remaining customers owe the business $2,450. Secure Home recorded $80 of service revenue for the year. If Secure Home had recorded their service revenue using the other method, how much service revenue would they have recorded for the year? 2 Identify whether each account would appear on the Balance Sheet or the Income Statement. Cash Unearned Revenue Balance Sheet Utilities Expense Prepaid Insurance Income Statement Income Statement Franchise Mortgages Payable Balance Sheet

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