Secure https://act com/activity/5/1/3 Sweet Catering completed the following sel

Question

Secure https://act com/activity/5/1/3 Sweet Catering completed the following selected transactions during May 2016: " May 1: Prepaid rent for three months, $1.500 May 5: Received and paid electricity bill, $180 May 9: Received cash for meals served to customers, $720 . May 14: Paid cash for kitchen equipment, $2,190 May 23: Served a banquet on account, $2.370 " May 31: Made the adjusting entry for rent (from May 1). . May 31: Accrued salary expense, $2.450 . May 31: Recorded depreciation for May on kitchen equipment, $280 GE If Sweet Catering had recorded transactions using the Cash method, how much net incom would they have recorded for the month of May? If there is a loss, enter it with parenthese negative sign. rked t Sco ots: mew if Sweet Catering had recorded transactions using the Accrual method, how much net incor (loss) would they have recorded for the month of May? If there is a loss. enter it with pareni or a negative sign. ount le (0 hat to

Explanation / Answer

Cash Basis Sales 720 Rent 1500 Electrcity bill 180 Kitchen Equipment 2190 3870 Net Loss -3150 Accrual Basis Sales 3090 Rent 500 Electrcity bill 180 Salary Expense 2450 Depreciation 280 3410 Net Loss -320

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