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Sweet Catering completed the following selected transactions during May 2016: I May 1: Prepaid rent for three months, $2,400 I May 5: Received and paid electricity bill, 510 I May 9: Received cash for meals served to customers, $2,210 I May 14: Paid cash for kitchen equipment, $2,100 I May 23: Served a banquet on account, $2,250 I May 31: Made the adjusting entry for rent (from May 1). I May 31: Accrued salary expense, $2,230 I May 31: Recorded depreciation for May on kitchen equipment, $500 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. 840 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. 860 CHECK ANSWER SKIP TO NEXT 0 Please review your answer and try again. ON AC Solution : 00 Cash Method : 300 STEPS CHECK Revenue $ 2 , 210 Less : Expenses Utilities expense ( Electricity ) $ 10 Rent expense ( 1 month only ) 800 Depreciation 500 1, 370 Net Income (Loss) $ 840 Accrual Method : Revenue $ 4, 460 Less : Expenses Utilities ( Electricity ) $ 70 Rent Expense ( 1 month only 800 Salary Expense 2 , 230 Depreciation 500 3, 600 Net Income ( LOSS ) $ 860 NOTES : May 1 : Recognized as asset for both method May 5 : Expense in cash and accrual method , $ 10 May 9: Revenue / Income in cash and accrual method, $ 2, 210 May M: Recognized as asset For both method. May 28: Revenue / Income in Accrual method only. May 31 : Expense in cash and accrual method, ($ 2, 400 18 months) = $ 800 monthly May 31 : Expense in Accrual method only , $ 2,230 May 31 : Expense in cash and accrual method, $ 506