Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answers to the questions. The Blue Nile Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $790 for six months of advertising. Blue Nile Law Firm recorded $790 in the Prepaid Advertising account. Accrual basis If Blue Nile 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. Seashore 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, Seashore Home has collected $1,960 from cash-paying customers. Seashore Home's remaining customers owe the business $1,120. Seashore Home recorded $1,960 of service revenue for the year. Cash basis If Seashore Home had recorded their service revenue using the other method, how much service revenue would they have recorded for the year? Momentous Occasions received $2,440 for services to be performed for the next 10 months on July 31 and recorded this transaction using the Unearned Revenue account. Accrual basis If Momentous Occasions had recorded their service revenue using the other method, how much service revenue would they have recorded for the year? Sweet Catering completed the following selected transactions during May 2016: May 5: Received and paid electricity bill, $230 May 9: Received cash for meals served to customers, $2,550 May 23: Served a banquet on account, $1,520 May 31: Accrued salary expense, $750 May 31: Recorded prepaid insurance expired, $670 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. 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