Question

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.

May 1: Prepaid rent for three months, $2,100
May 5: Received and paid electricity bill, $80
May 9: Received cash for meals served to customers, $2,530
May 14: Paid cash for kitchen equipment, $2,420
May 23: Served a banquet on account, $2,800
May 31: Made the adjusting entry for rent (from May 1).
May 31: Accrued salary expense, $2,770
May 31: Recorded depreciation for May on kitchen equipment, $180

Answer 1

Explanation:

Sweet Catering completed the following selected transactions during May 2016: May 1: Prepaid rent for three months, $2,100 May 5: Received and paid electricity bill, $160 May 9: Received cash for meals served to customers, $790 May 14: Paid cash for kitchen equipment, $2,330 May 23: Served a banquet on account, $2,790 May 31: Made the adjusting entry for rent (from May 1). May 31: Accrued salary expense, $1,630 May 31: Recorded depreciation for May on kitchen equipment, $110 If...