E3-19 (similar to) Question Help o Calorie Catering completed the following selected transactions during May 2018: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Show whether each transaction would be handled as a revenue or an expense using both the cash basis and accrual basis accounting systems by completing the table provided. (Expenses should be shown in parentheses.) Also indicate the dollar amount of the revenue or expense. The May 1 transaction has been completed as an example. (Enter "O" for any transactions that do not affect revenues or expenses.) Amount of Revenue (Expense) for May Cash Basis Amount Accrual Basis Amount Date of Revenue (Expense) of Revenue (Expense) $ (3,600) $ 0 May 1 Press Continue to see more. 9 parts remaining Continue i More Info - X eu e or May 1 May 5 May 9 May 14 May 23 May 31 May 31 May 31 Prepaid rent for three months, $3,600. Received and paid electricity bill, $500. Received cash for meals served to customers, $2,400. Paid cash for kitchen equipment, $2,100. Served a banquet on account, $3,200. Made the adjusting entry for rent (from May 1). Accrued salary expense, $1,200. Recorded depreciation for May on kitchen equipment, $35. Print Done i Requirements -X 1. Show whether each transaction would be handled as a revenue or an expense using both the cash basis and accrual basis accounting systems by completing the table provided. (Expenses should be shown in parentheses.) Also, indicate the dollar amount of the revenue or expense. The May 1 transaction has been completed as an example. Amount of Revenue (Expense) for May Cash Basis Amount of Accrual Basis Amount of Date Revenue (Expense) Revenue (Expense) May 1 $ (3,600) $ 0 2. After completing the table, calculate the amount of net income or net loss for Calorie Catering under the accrual basis and cash basis accounting systems for May 3. Considering your results from Requirement 2, which method gives the best picture of the true earnings of Calorie Catering? Why? Print Done remaining E3-19 (similar to) Question Help o Calorie Catering completed the following selected transactions during May 2018: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Show whether each transaction would be handled as a revenue or an expense using both the cash basis and accrual basis accounting systems by completing the table provided. (Expenses should be shown in parentheses.) Also indicate the dollar amount of the revenue or expense. The May 1 transaction has been completed as an example. (Enter "O" for any transactions that do not affect revenues or expenses.) Amount of Revenue (Expense) for May Cash Basis Amount Accrual Basis Amount Date of Revenue (Expense) of Revenue (Expense) $ (3,600) $ 0 May 1 Press Continue to see more. 9 parts remaining Continue i More Info - X eu e or May 1 May 5 May 9 May 14 May 23 May 31 May 31 May 31 Prepaid rent for three months, $3,600. Received and paid electricity bill, $500. Received cash for meals served to customers, $2,400. Paid cash for kitchen equipment, $2,100. Served a banquet on account, $3,200. Made the adjusting entry for rent (from May 1). Accrued salary expense, $1,200. Recorded depreciation for May on kitchen equipment, $35. Print Done i Requirements -X 1. Show whether each transaction would be handled as a revenue or an expense using both the cash basis and accrual basis accounting systems by completing the table provided. (Expenses should be shown in parentheses.) Also, indicate the dollar amount of the revenue or expense. The May 1 transaction has been completed as an example. Amount of Revenue (Expense) for May Cash Basis Amount of Accrual Basis Amount of Date Revenue (Expense) Revenue (Expense) May 1 $ (3,600) $ 0 2. After completing the table, calculate the amount of net income or net loss for Calorie Catering under the accrual basis and cash basis accounting systems for May 3. Considering your results from Requirement 2, which method gives the best picture of the true earnings of Calorie Catering? Why? Print Done remaining
