Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent for three months, $2,700 May 5: Received and paid electricity bill, $220 May 9: Received cash for meals served to customers, $2,980 May 14: Paid cash for kitchen equipment, $2,500 May 23: Served a banquet on account, $1,610 May 31: Made the adjusting entry for rent (from May 1). May 31: Accrued salary expense, $2,610 May 31: Recorded depreciation for May on kitchen equipment, $790 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.   Net income (loss) =   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.   Net income (loss) =

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Sweet Catering completed the following selected transactions during May 2016:
  • May 1: Prepaid rent for three months, $2,700
  • May 5: Received and paid electricity bill, $220
  • May 9: Received cash for meals served to customers, $2,980
  • May 14: Paid cash for kitchen equipment, $2,500
  • May 23: Served a banquet on account, $1,610
  • May 31: Made the adjusting entry for rent (from May 1).
  • May 31: Accrued salary expense, $2,610
  • May 31: Recorded depreciation for May on kitchen equipment, $790

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.

 

Net income (loss) =

 

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.

 

Net income (loss) =

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