and More info basi May 1 May 4 May 5 May 8 May 11 May 19 May 24 May 26 May 29 May May 31 May 31 Prepaid insurance for May through July, $3,900. Purchased office furniture for cash, $3,000. Performed services and received cash, $1,200. Paid advertising expense, $400. Performed service on account, $2,800. Purchased computer on account, $2,500. Collected for May 11 service. Paid account payable from May 19. Paid salary expense, $1,500. 31 Adjusted for May insurance expense (see May 1). Earned revenue of $500 that was collected in advance back in April. Recorded May depreciation expense on all fixed assets, $408. Use pare Requirements 1. Show how each transaction would be handled (in terms of recognizing revenues and expenses) using the cash basis and the accrual basis. 2. Calculate May income (loss) before tax under each accounting method. 3. Indicate which measure of net income or net loss is preferable. Use the transactions on May 11 and May 24 to explain. - Requirement Show how auch and would be handed using the cash band hea Dee 4 " " 24 201 2 " 31 31 Can Baus A Requirement 2. Cautets May income (s) before under each The bers On May 24, the business colected the $2.800 of revenue and increased The received, on May 24, to recont there. The