In its first year of operations, Cope Company earned $28,380 in service revenue, $6,380 of which was on account and still outstanding at year-end. The remaining $22,000 was received in cash from customers.The company incurred operating expenses of $15,840. Of these expenses $15,000 were paid in cash; $840 was still owed on account at year-end. In addition, Cope prepaid $3,010 for insurance coverage that would not be used until the second year of operations.