Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent for three months, $2,700 . May 5: Received and paid electricity bill, $240 May 9: Received cash for meals served to customers, $1,430 May 14: Paid cash for kitchen equipment, $2,550 May 23: Served a banquet on account, $2,280 May 31: Made the adjusting entry for rent (from May 1). . May 31: Accrued salary expense, $1,800 May 31: Recorded depreciation for May on kitchen equipment, $160 . 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. 1120 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 Activity 5.a - Journalizing and Posting Transactions Journalize the adjusting entry needed at December 31 for each situation. Use the Chart of Accounts to review account names! Completed services that were paid for six months earlier, 53,100 Date Accounts and Explanation Debit Credit Dec. 31 Used prepaid insurance of 52,700 Date Accounts and Explanation Debit Credit incurred interest expense of $900 Date Accounts and Explanation Debit Credit Copyright 2020 Pearson Education Inc. All rights reserved. Terms of Use Privacy Policy permissions