Accounting Cycle Tutorial E Step 5: Adjusting Entries .????? Understanding The Cash Versus Accrual Basis Activity 1.C-Identifying Differences Between Cash And Accrual Basis Read Each Scenario, Decide Whether The Company Is Using Cash Basis Or Accrual Basis, And Then Enter Your Answer To The Question. The Purple Tulip Law Firm Prepays For Advertising In The

 

Served a banquet on account, $2,700 May 31: Made the adjusting entry for rent (from May 1) May 31: Accrued salary expense, $2,130 May 31: Recorded depreciation for May on kitchen equipment, $610 If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May? If there is a loss, enter it with parentheses or a negative sign. If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May? If there is a loss, enter it with parentheses or a negative sign. C RESET 0 CHECK ANSWER

 

 

 

 Momentous Occasions received $290 for services to be performed for the next 8 months on March 31 and recorded this transaction using the Unearned Revenue account. . If Momentous Occasions had recorded their service revenue using the other method, how much service revenue would they have recorded for the year? Sweet Catering completed the following selected transactions during May 2016 Sweet Catering completed the following selected transactions during May 2016 May 1: Prepaid rent for three months, $3,000 May 5: Received and paid electricity bill, $150 May 9: Received cash for meals served to customers, $1,470 May 14: Paid cash for kitchen equipment, $3,520 May 23: 

 

 

 

Accounting Cycle Tutorial Step 5: Adjusting Entries 00000 Understanding the Cash versus Accrual basis Activity 1.c-Identifying Differences between Cash and Accrual Basis Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question. The Purple Tulip Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $1,840 for six months of advertising. Purple Tulip Law Firm recorded $1,840 in the Prepaid Advertising account. Accrual basis If Purple Tulip 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. Seashore Home provides house-sitting for 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. Seashore Home has collected $1,660 from cash-paying customers. Seashore Home's remaining customers owe the business $3,140. Seashore Home recorded $1,660 of service revenue for the year. Cash basis