Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent for three months,
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Question:
Sweet Catering completed the following selected transactions during May 2016:
- May 1: Prepaid rent for three months, $1,800
- May 5: Received and paid electricity bill, $120
- May 9: Received cash for meals served to customers, $2,890
- May 14: Paid cash for kitchen equipment, $3,470
- May 23: Served a banquet on account, $1,560
- May 31: Made the adjusting entry for rent (from May 1).
- May 31: Accrued salary expense, $1,000
- May 31: Recorded depreciation for May on kitchen equipment, $330
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.
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