The Oak Lodge had the following selected transactions during August: Aug. 1 Prepaid rent for three months,$3,000
Question:
The Oak Lodge had the following selected transactions during August:
Aug. 1 Prepaid rent for three months,$3,000
5. Paid electricity expenses $700
9. Received cash for the day's room rentals $1,400
14. Purchased six television sets $3,000
23. Served a banquet, receiving a note receivable $1,200
31. Made the adjusting entry for rent (from Aug. 1)
31. Accruel salary expense $900
Show how each transaction would be handled using the cash basis and the accrial basis. Under each column give the amount of revenue or expense for Aug. Journal entries are not required. Use the followong format for your answer and show your computations,
Oak Lodge- Amount of Revenue or expense for Aug.
Date Cash Basis Accrual Basis
