Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent for three...

 

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טוכו 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, $100 • May 9: Received cash for meals served to customers, $1,190 ● May 14: Paid cash for kitchen equipment, $2,800 May 23: Served a banquet on account, $2,170 • May 31: Made the adjusting entry for rent (from May 1). • May 31: Accrued salary expense, $1,540 ● • May 31: Recorded depreciation for May on kitchen equipment, $600 ● 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. טוכו 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, $100 • May 9: Received cash for meals served to customers, $1,190 ● May 14: Paid cash for kitchen equipment, $2,800 May 23: Served a banquet on account, $2,170 • May 31: Made the adjusting entry for rent (from May 1). • May 31: Accrued salary expense, $1,540 ● • May 31: Recorded depreciation for May on kitchen equipment, $600 ● 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.

Answer rating: 100% (QA)

SOLUTION If Sweet Catering had recorded transactions using the Cash method the net income loss would be calculated based on cash receipts and cash pay... View the full answer