Secure h Secure httpe/ect pearsoncmg.comtet 170 75 78 30 est-out/5 Sweet Caterin

Question

Secure h Secure httpe/ect pearsoncmg.comtet 170 75 78 30 est-out/5 Sweet Catering completed the following selected transactions during May 2016: " May 1: Prepald rent for three months, $1.800 " May S: Received and paid electricity bill, $200 " May 9: Received cash for meals served to customers, $2.310 May 14: Paid cash for kitchen equipment, $2410 . May 23: Served a banquet on account, $2.480 " May 31: Made the adjusting entry for rent (from May 1). May 31: Accrued salary expense, $1,410 . May 31: Recorded depreciation for May on kitchen equipment, 5720 If r 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 incor (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 o Income Statement.

Explanation / Answer

Net Income /loss under Cash method particulars amount Cash receive from meal $           2,310.00 less: payment of rent $         -1,800.00 less: payment of electricity bill $             -200.00 net income $              310.00 Net Income /loss under accrual method cash received for meal $        23,100.00 banquet serve $           2,480.00 less: rent payment (1800/3) $             -600.00 less: payment of electricity $             -200.00 less: accrued slary exp $         -1,410.00 depreciation $             -720.00 net income $        22,650.00

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