Sweet Catering completed the following selected transactions during May 2016:May 1: Prepaid rent for three months, $1,800May 5: Received and paid electricity bill, $200May 9: Received cash for meals served to customers, $1,690May 14: Paid cash for kitchen equipment, $2,500May 23: Served a banquet on account, $2,440May 31: Made the adjusting entry for rent (from May 1).May 31: Accrued salary expense, $2,700May 31: Recorded depreciation for May on kitchen equipment, $450 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.

Calculate the net income (loss) during the month of May using cash method.

Answered: Sweet Catering completed the following…

College Accounting (Book Only): A Career Approach

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ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts

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Sweet Catering completed the following selected transactions during May 2016:
May 1: Prepaid rent for three months, $1,800 May 5: Received and paid electricity bill, $200 May 9: Received cash for meals served to customers, $1,690 May 14: Paid cash for kitchen equipment, $2,500 May 23: Served a banquet on account, $2,440 May 31: Made the adjusting entry for rent (from May 1). May 31: Accrued salary expense, $2,700 May 31: Recorded depreciation for May on kitchen equipment, $450
	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.

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