May 1: Prepaid rent for three months, $2,400 • May 5: Received and paid electricity bill, $70 • May 9: Received cash for meals served to customers, $110 • May 14: Paid cash for kitchen equipment, $2,690 • May 23: Served a banquet on account, $2,240 • May 31: Made the adjusting entry for rent (from May 1). • May 31: Accrued salary expense, $3,920 • May 31: Recorded depreciation for May on kitchen equipment, $590 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.

May 1: Prepaid rent for three months, $2,400 • May 5: Received and paid electricity bill, $70 • May 9: Received cash for meals served to customers, $110 • May 14: Paid cash for kitchen equipment, $2,690 • May 23: Served a banquet on account, $2,240 • May 31: Made the adjusting entry for rent (from May 1). • May 31: Accrued salary expense, $3,920 • May 31: Recorded depreciation for May on kitchen equipment, $590 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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