Sweet Catering completed the following selected transactions during May 2016: Ma
ID: 2592415 • Letter: S
Question
Sweet Catering completed the following selected transactions during May 2016:
May 1: Prepaid rent for three months, $1,200
May 5: Received and paid electricity bill, $130
May 9: Received cash for meals served to customers, $1,820
May 14: Paid cash for kitchen equipment, $3,460
May 23: Served a banquet on account, $2,970
May 31: Made the adjusting entry for rent (from May 1).
May 31: Accrued salary expense, $310
May 31: Recorded depreciation for May on kitchen equipment, $440
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.
Sweet Catering completed the following selected transactions during May 2016:
May 1: Prepaid rent for three months, $1,200
May 5: Received and paid electricity bill, $130
May 9: Received cash for meals served to customers, $1,820
May 14: Paid cash for kitchen equipment, $3,460
May 23: Served a banquet on account, $2,970
May 31: Made the adjusting entry for rent (from May 1).
May 31: Accrued salary expense, $310
May 31: Recorded depreciation for May on kitchen equipment, $440
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.
Explanation / Answer
If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month
revenue (1820+2970) 4790 Less: Expenses Rent expenses (1200/3) (400) Electricity exp (130) Salary expenses (310) Depreciation exp (440) Net income 3510Related Questions
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