Sweet Catering completed the following selected transactions during May 2016: • May 1: Prepaid rent for three months, $1,200 • May 5: Received and paid electricity bill, $100 • May 9: Received cash for meals served to customers, $880 • May 14: Paid cash for kitchen equipment, $3,520 • May 23: Served a banquet on account, $1,540 • May 31: Made the adjusting entry for rent (from May 1). • May 31: Accrued salary expense, $2,390 • May 31: Recorded depreciation for May on kitchen equipment, $300 If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they ha recorded for the month of May? If there is a loss, enter it with parentheses or a negative sign. (3940) If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they recorded for the month of May? If there is a loss, enter it with parentheses or a negative sign. -720

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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the 2nd part highlighted, im not sure what I am doing wrong.

Sweet Catering completed the following selected transactions during May 2016:
May 1: Prepaid rent for three months, $1,200
May 5: Received and paid electricity bill, $100
May 9: Received cash for meals served to customers, $880
• May 14: Paid cash for kitchen equipment, $3,520
●
May 23: Served a banquet on account, $1,540
●
●
May 31: Made the adjusting entry for rent (from May 1).
• May 31: Accrued salary expense, $2,390
• May 31: Recorded depreciation for May on kitchen equipment, $300
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.
(3940)
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.
-720
Transcribed Image Text:Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent for three months, $1,200 May 5: Received and paid electricity bill, $100 May 9: Received cash for meals served to customers, $880 • May 14: Paid cash for kitchen equipment, $3,520 ● May 23: Served a banquet on account, $1,540 ● ● May 31: Made the adjusting entry for rent (from May 1). • May 31: Accrued salary expense, $2,390 • May 31: Recorded depreciation for May on kitchen equipment, $300 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. (3940) 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. -720
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