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

Under cash method, only cash transactions are recorded while under accrual method, transactions…

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, $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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