If sweet Catering has recorded transactions using Cash method, how much net inco

Question

If sweet Catering has recorded transactions using Cash method, how much net income(loss) would they have recorded for the month of May? If sweet Catering has recorded transactions using Cash method, how much net income(loss) would they have recorded for the month of May? If sweet Catering has recorded transactions using Cash method, how much net income(loss) would they have recorded for the month of May? 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, $90 May 9: Received cash for meals served to customers, $1,860 May 14: Paid cash for kitchen equipment, $2,400 May 23: Served a banquet on account, $2,420 May 31: Made the adjusting entry for rent (from May 1) May 31: Accrued salary expense, $2,500 May 31: Recorded depreciation for May on kitchen equipment, $210 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 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 sigr

Explanation / Answer

Cash method: Revenue 1860 Expenses: Rent expense 1500 Electricity bill 90 Salary expense 0 Depreciation expense 2400 Total Expenses 3990 Net income(loss) -2130 Accrual method: Revenue 4280 =1860+2420 Expenses: Rent expense 500 Electricity bill 90 Salary expense 2500 Depreciation expense 210 Total Expenses 3300 Net income(loss) 980

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