acten committy Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question. The Blue Nile Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $430 for six months of advertising. Blue Nile Law Firm recorded $430 in the Prepaid Advertising account. If Blue Nile Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for the two months ending February 287 Enter this value as a positive number Secure 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, Secure Home has collected $1,750 from cash-paying customers. Secure Home's remaining customers owe the business $3,230. Secure Home recorded $1,750 of service revenue for the year. If Secure Home had recorded their service revenue using the other method, how much service revenue would they have recorded for the year? Marvelous Occasions received $2,390 for services to be performed for the next 8 months on March 31 and recorded this transaction using the Unearned Revenue account. If Marvelous 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: May 1: Prepaid rent for three months, $2,700 May 5: Received and paid electricity bill, $220 May 9: Received cash for meals served to customers, $1,540 May 14: Paid cash for kitchen equipment, $2,040 May 23: Served a banquet on account, $2,650 May 31: Made the adjusting entry for rent (from May 1). May 31: Accrued salary expense, $270 May 31: Recorded depreciation for May on kitchen equipment, $170 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 2 dentify whether each account would appear on the Balance Sheet or the Income Statement. Service Revenue Rent Payable Repairs and Maintenance Expense Interest Expense Supplies Expense Accumulated Depreciation - Truck Fill in the t-accounts for each situation and label each transaction as Prepaid (Deferrals) or Accrual. Calculate the adjusted balance and use a Bal. post reference to show the ending balance of each account. Employees earned $2,200 in salaries that will be paid next month. The Salaries Expense unadjusted balance as of December 31 is $6,800. Adjustment Type: Salaries Expense Salaries Payable Used prepaid insurance of $4,740 The Prepaid insurance unadjusted balance as of December 31 is $11,200 Adjustment Type Insurance Expense Prepaid Insurance The unadjusted balance of Office Supplies at Dec. 31 is $10,600 and at year end the office supplies on hand totaled $340. Adjustment Type: Supplies Expense I Office Supplies Journalize the adjusting entry needed at December 31 for each situation. Used prepaid insurance of 11.200 Dele Date Accounts and Explanation Debi Credi Depan for these year indudes 300 O De Credis Credit