: SET A

P$3-1$A Consider the following transactions.

Transaction

Accrual$-$basis

Revenue

Expense

Receive cash from customers in advance of services to be provided, $$600.$

$2.$ Pay utilities bill for the previous period, $$150.$

$3.$ Pay for insurance in advance of the period to be covered, $$2,000.$

$4.$ Pay workers' salaries for the current period, $$800.$

$5.$ Incur costs for employee salaries in the current period but do not pay, $$1,000.$

$6.$ Receive cash from customers at the time of service, $$1,700.$

$7.$ Purchase office supplies on account, $$330.$

$8.$ Borrow cash from the bank, $$4,000.$

$9.$ Receive cash from customers for services performed in the previous period, $$750.$

$10.$ Pay for advertising to appear in the current period, $$450.$

Cash$-$basis

Revenue Expense

Required:

For each transaction, determine the amount of revenue or expense, if any, that is recorded under accrual$-$basis accounting and under cash$-$basis accounting in the current period.