QUESTION 2 ONLY.

U DEDE LO asse 14 points) e) Profit margin. (4 points) Use the editor to format your answer Question 2 20 Points Accrual and Cash Accounting Midterm Exam .docx A Using the attached, please complete the Accrual and Cash Accounting Methods. Please type Net Profit for Accrual and Cash Accounting in the box below. Use the editor to format your answer Question 3 2 Points Which would be the first action to occur in a hospitality business's transaction recording and analysis process? A Financial analysis B Guest purchase I No Spaci... Heading 7 Subtle Em.. Emphasis Font Paragraph 1 Rhys and John are partners who own a casual dining restaurant in the outskirts of the town. Rhys likes to report his income statement using accrual accounting, and John likes to report his income statement using cash accounting. Given the following information, complete the spreadsheet below for October using both accrual accounting for Rhys and cash accounting for John. (15 points) The restaurant generated $543,000 in revenue, but only received $115,000. Cost of food sold was $94,000, but only $81,000 was paid to the supplier. Salaries and wages were $28,000, but only 50% was paid to employees. Utilities expense was $2,800 and $0 was paid. Maintenance expense was $700, but it had been prepaid in September for the quarter Marketing expense was $400 and all of it was paid. Rent expense was $10,000 but only 40% of it was paid. Rhys Accrual John Cash Accounting Accounting Revenue Expenses: Cost of Food Sold Salaries and Wages Utilities Maintenance Marketing Rent Net Profit or (Loss) a) Which Accounting Method showed a higher net profit