Question
May 1: Prepaid rent for three months, $1,200 May 5: Received and paid electricity bill, $220 May 9: Received cash for meals served to customers,
May 1: Prepaid rent for three months, $1,200
May 5: Received and paid electricity bill, $220
May 9: Received cash for meals served to customers, $3,600
May 14: Paid cash for kitchen equipment, $3,690
May 23: Served a banquet on account, $1,690
May 31: Made the adjusting entry for rent (from May 1).
May 31: Accrued salary expense, $3,330
May 31: Recorded depreciation for May on kitchen equipment, $80
1.)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.
2.)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.
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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
