Sweet Catering completed the following selected transactions during May 2016:May 1: Prepaid rent for three months, $1,500May 5: Received and paid electricity bill, $230May 9: Received cash for meals served to customers, $2,180May 14: Paid cash for kitchen equipment, $3,390May 23: Served a banquet on account, $2,750May 31: Made the adjusting entry for rent (from May 1).May 31: Accrued salary expense, $2,470May 31: Recorded depreciation for May on kitchen equipment, $510 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.

The objective of the question is to calculate the net income or loss for Sweet Catering for the…

Answered: Sweet Catering completed the following…

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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Sweet Catering completed the following selected transactions during May 2016:
May 1: Prepaid rent for three months, $1,500 May 5: Received and paid electricity bill, $230 May 9: Received cash for meals served to customers, $2,180 May 14: Paid cash for kitchen equipment, $3,390 May 23: Served a banquet on account, $2,750 May 31: Made the adjusting entry for rent (from May 1). May 31: Accrued salary expense, $2,470 May 31: Recorded depreciation for May on kitchen equipment, $510
	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.