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  3. total tree services earned $150,000 of service rev

Total Tree Services earned $150,000 of service revenue during 2021. Of the $150,000 earned, the...

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Accounting

Total Tree Services earned $150,000 of service revenue during 2021. 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 Tree Services incurred $88,000 of expenses during the year. As of December 31, $7,000 of the expenses still needed to be paid. In addition, Total Tree Services prepaid $2,000 cash in December 2021 for expenses incurred during the next year. a. Determine the amount of service revenue and expenses for 2021 using a cash-basis accounting system. b. Determine the amount of service revenue and expenses for 2021 using an accrual-basis accounting system. a. Determine the amount of service revenue and expenses for 2021 using a cash-basis accounting system. Cash basis Service revenue Expenses

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