1 ead each scenario, decide whether the company is using Cash basis or Accrual basis, and then ente our answers to the questions. The Blue Nile Law Firm prepays for advertising in the local newspaper. On January 1 , the law firm paid $1,320 for six months of advertising. Blue Nile Law Firm recorded $1,320 in the Prepaid Advertising account. If Blue Nile Law Firm had recorded their expenses using the other method, how much advertising expense would they have recorded for the two months ending February 28 ? Enter this value as a positive number. Secure Home provides house-sitting for people while they are away on vacation. Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. As of the end of the year, Secure Home has collected $3,210 from cash-paying customers. Secure Home's remaining customers owe the business $3,150. Secure Home recorded $3,210 of service revenue for the year. If Secure Home had recorded their service revenue using the other method, how much service revenue would they have recorded for the year? Marvelous Occasions received $1,960 for services to be performed for the next 10 months on July 31 and recorded this transaction using the Unearned Revenue account. If Marvelous Occasions had recorded their service revenue using the other method, how much service revenue would they have recorded for the year? Sweet Catering completed the following selected transactions during May 2016 : - May 5: Received and paid electricity bill, $70 - May 9: Received cash for meals served to customers, $3,150 - May 23: Served a banquet on account, \$2,900 - May 31: Accrued salary expense, $680 - May 31: Recorded prepaid insurance expired, $310 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. Identify whether each account would appear on the Balance Sheet or the Income Statement. Fill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid, Accrual, or Depreciation. Use Unadj. Bal. as the label for the opening balance of each account. Calculate the adjusted balance and use a Bal. posting reference to show the ending balance of each account. Enter each transaction on the first available line in the TAccount. A two-year insurance policy for $5,280 was purchased on November 1 of the current year. Record the transaction for the two months ended December 31. Recieved a bill for utilities for $7,920 which will be paid next month. Adjustment Type: Employees earned $1,520 in salaries that will be paid next month. The Salaries Expense unadjusted balance as of December 31 is $9,100. Journalize the adjusting entry needed at December 31 for each situation. Record debits first, then credits. Check your spelling carefully and do not abbreviate. Use account names exactly as given in the Chart of Accounts. Used office supplies of $1,700. Employees earned $1,700 in salaries that will be paid next month. Depreciation for the current year includes Equipment, $4,900