Final answer:
The amount of unearned revenue and service revenue shown on the Year 1 financial statements would both be $1,800.
Step-by-step explanation:
Unearned revenue refers to the amount of cash received in advance for goods or services that have not yet been provided. In this case, Zoe Company collected $1,800 cash for medical services to be provided for one year beginning immediately. Therefore, on the Year 1 financial statements, the amount of unearned revenue would be $1,800.
Service revenue, on the other hand, represents the amount of revenue earned from providing services. Since Zoe Company collected cash upfront for the medical services, the service revenue would also be $1,800 on the Year 1 financial statements.