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 $1,840 for six months of advertising. Orange Lily Law Firm recorded $1,840 in the Prepaid Advertising account. 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. 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 $2,940 from cash-paying customers. Seashore Home's remaining customers owe the business $2,860. Seashore Home recorded $2,940 of service revenue for the year. If Seashore Home had recorded their service revenue using the other method, how much service revenue would they have recorded for the year? Marvelous Occasions received $2,500 for services to be performed for the next 8 months on March 31 and recorded this transaction using the Unearned Revenue account. If Marvelous 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 1: Prepaid rent for three months, $2,100 May 5: Received and paid electricity bill, $210 May 9: Received cash for meals served to customers, $1,820 May 14: Paid cash for kitchen equipment, $2,470 May 23: Served a banquet on account, $2,030 May 31: Made the adjusting entry for rent (from May 1). . May 31: Accrued salary expense, $2,750 May 31: Recorded depreciation for May on kitchen equipment, $60 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. 2 Identify whether each account would appear on the Balance Sheet or the Income Statement. Land Salaries (and Wages) Payable Advertising Expense Building Repairs and Maintenance Expense Interest Expense