Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent for three months, $3,000 May 5: Received and paid electricity bill,

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent for three months, $3,000 May 5: Received and paid electricity bill, $220 May 9: Received cash for meals served to customers, $3,450 May 14: Paid cash for kitchen equipment, $3,650 May 23: Served a banquet on account, $2,180 May 31: Made the adjusting entry for rent (from May 1). May 31: Accrued salary expense, $760 May 31: Recorded depreciation for May on kitchen equipment, $90 . 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, Fill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid or Accrual. Calculate the adjusted balance and use a Bal. post reference to show the ending balance of each account. Used office supplies of $1,700. The Office Supplies unadjusted balance on December 31 is $9,100 Adjustment Type: Supplies Expense Office Supplies The unadjusted balance of Office Supplies at Dec. 31 is $9,500 and at year end the office supplies on hand totaled $1,000 Adjustment Type: Supplies Expense Office Supplies A two year insurance policy for $10,560 was purchased on November 1 of the current year. Record the transaction for the year ended December 31, Adjustment Type Insurance Expense Prepaid Insurance Employees earned $3,500 in salaries that will be paid next month. Date Accounts and Explanation Debit Credit The unadjusted balance of Office Supplies at Dec. 31 is $4,400 and at year end the office supplies on hand totaled $1,200. Accounts and explanation Date Debit Credit A two year insurance policy for 55,280 was purchased on November of the current year. Record the transaction for the year ended December 31 Date Accounts and Explanation Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Financial and Managerial Accounting

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

4th Edition

978-0133251241, 9780133427516, 133251241, 013342751X, 978-0133255584

More Books

Students also viewed these Accounting questions

Question

1. Pupils can be trusted to work together without supervision.

Answered: 1 week ago