Sweet Catering completed the following selected transactions during May 2016: Ma
ID: 2525644 • Letter: S
Question
Sweet Catering completed the following selected transactions during May 2016:
May 1: Prepaid rent for three months, $3,000 May 5: Received and paid electricity bill, $130 May 9: Received cash for meals served to customers, $3,990 May 14: Paid cash for kitchen equipment, $2,000 May 23: Served a banquet on account, $1,660 May 31: Made the adjusting entry for rent (from May 1) May 31: Accrued salary expense, $1,050 May 31: Recorded depreciation for May on kitchen equipment, $520 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 sign.Explanation / Answer
1 Revenue 3990 Expenses: Rent expense 3000 Electricity expense 130 Kitchen equipment 2000 Net income(loss) -1140 2 Revenue 5650 =3990+1660 Expenses: Rent expense 1000 Electricity expense 130 Salary expense 1050 Depreciation expense 520 Net income(loss) 2950
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.