Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question. The Orange Lily Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $540 for six months of advertising. Orange Lily Law Firm recorded $540 in the Prepaid Advertising account. Accrual basis If Orange Lily Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for the two months ending February 28 Enter this value as a positive number. 180 Safe 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, Safe Home has collected $3,470 from cash-paying customers. Safe Home's remaining customers owe the business $3,350. Safe Home recorded $3,470 of service revenue for the year. Cash basis If Safe Home had recorded their service revenue using the other method, how much service revenue would they have recorded for the year? 6820 Splendid Occasions received $2,460 for services to be performed for the next & months on March 31 and recorded this transaction using the Unearned Revenue account. Accrual basis If Splendid Occasions had recorded their service revenue using the other method, how much service revenue would they have recorded for the year? 2460 Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent for three months, $2,400 May 5: Received and paid electricity bill, $180 May 9: Received cash for meals served to customers, 5770 May 14: Paid cash for kitchen equipment, $2,080 May 23: Served a banquet on account, $1,870 May 31: Made the adjusting entry for rent (from May 1). May 31: Accrued salary expense, $3,610 May 31: Recorded depreciation for May on kitchen equipment, 580 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 lous, enteri with parentheses or a negative sign 0 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 0000