Requirement 1. Show whether each transaction would be handled as a revenue or an expense using both the cash basis and accrual basis accounting systems by completing the table provided. (Expenses should be shown in parentheses.) Also indicate the dollar amount of the revenue or expense. The May 1 transaction has been completed as an example. (Enter "0" for any transactions that do not affect revenues or expenses.) Date May 1 Amount of Revenue (Expense) for May Cash Basis Amount of Revenue (Expense) (2,700) $ Accrual Basis Amount of Revenue (Expense)
Requirement 1. Show whether each transaction would be handled as a revenue or an expense using both the cash basis and accrual basis accounting systems by completing the table provided. (Expenses should be shown in parentheses.) Also indicate the dollar amount of the revenue or expense. The May 1 transaction has been completed as an example. (Enter "0" for any transactions that do not affect revenues or expenses.) Date May 1 Amount of Revenue (Expense) for May Cash Basis Amount of Revenue (Expense) (2,700) $ Accrual Basis Amount of Revenue (Expense)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Requirement 1. Show whether each transaction would be handled as a revenue or an expense using both the cash basis and accrual basis accounting systems by completing
the table provided. (Expenses should be shown in parentheses.) Also indicate the dollar amount of the revenue or expense. The May 1 transaction has been completed as an
example. (Enter "0" for any transactions that do not affect revenues or expenses.)
Date
May 1
Amount of Revenue (Expense) for May
Cash Basis Amount
of Revenue (Expense)
$
(2,700)
Accrual Basis Amount
of Revenue (Expense)
Transcribed Image Text:May 1
May 5
May 9
May 14
May 23
May 31
May 31
May 31
Prepaid rent for three months, $2,700.
Received and paid electricity bill, $900.
Received cash for meals served to customers, $2,500.
Paid cash for kitchen equipment, $2,400.
Served a banquet on account, $3,700.
Made the adjusting entry for rent (from May 1).
Accrued salary expense, $1,400.
Recorded depreciation for May on kitchen equipment, $40.
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