Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answers to the questions. The Purple Tulip Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid $3,940 for six months of advertising. Purple Tulip Law Firm recorded $3,940 in the Prepaid Advertising account. If Purple Tulip 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. 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 $1,790 from cash-paying customers. Safe Home's remaining customers owe the business $2,930. Safe Home recorded $1,790 of service revenue for the year. If Safe Home had recorded their service revenue using the other method, how much service revenue would they have recorded for the year? Splendid Occasions received $3,600 for services to be performed for the next 10 months on July 31 and recorded this transaction using the Unearned Revenue account. If Splendid 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, $70 May 9: Received cash for meals served to customers, $2,530 May 23: Served a banquet on account, $2,460 May 31: Accrued salary expense, $280 May 31: Recorded prepaid insurance expired, $540 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. Trademark Service Revenue Repairs and Maintenance Expense Insurance Expense Unearned Revenue Supplies Expense