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the following selected transactions during May 2018: a - X Requirements A More Info May Show whether each transaction would be handled as a revenue

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the following selected transactions during May 2018: a - X Requirements A More Info May Show whether each transaction would be handled as a revenue or an expense using both the cash basis and accrual basis accounting systems by completing the table provided. (Expenses should be shown in parentheses) Also, indicate the dollar amount of the revenue or expense. The May 1 transaction has been completed as an example After completing the table, calculate the amount of net income or net loss for Big Day Catering under the accrual basis and cash basis accounting systems for May Considering your results from Requirement 2, which method gives the best picture of the true earnings of Big Day Catering? Why? 1 Prepaid rent for three months, $3,300. 5 Received and paid electricity bill, $300 9 Received cash for heals served to customers, 52,300. 14 Paid cash for kitchen equipment, $4,200. 23 Served a banquet on account, $3,200 31 Made the adjusting entry for rent (from May 1). 31 Accrued salary expense, $1,300 31 Recorded depreciation for May on kitchen equipment, $ Print Done Print Done Clear All Big Day Catering completed the following selected transactions during May 2018: (Click the icon to view the transactions) Read the requirements Requirement 1. Show whether each transaction would be handled as a revenue or an expense using both the cash basis and accrual basis accounting systems by completing the table provided (Expenses should be shown in parentheses) Also indicate the dollar amount of the revenue or expense The May 1 transaction has been completed as an example (Enter "O" for any transactions that do not affect revenues or expenses.) Amount of Revenue (Expense) for May Cash Basis Amount Accrual Basis Amount of Revenue (Expense) of Revenue (Expense) $ (3,300) Date May 1 May 5

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