Bennett, the British wireless phone service provider, collects cash in advance from customers. All amounts are in millions of pounds sterling (£), the British monetary unit. Assume Bennett collected £430 in advance during 2012 and at year end still owed customers phone service worth £80.

Requirements
1. Show what Bennett will report for 2012 on its income statement and balance sheet.
2. Use the same facts for Bennett as in Requirement 1. Further, assume Bennett reported unearned service revenue of £65 back at the end of 2011. Show what Bennett will report for 2012 on the same financial statements. Explain why your answer here differs from your answer to Requirement 1.