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Read each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the questiSeashore Home provides house-sitting for people while they are away on vacation. Some of its customers pay immediately afterSweet Catering completed the following selected transactions during May 2016: • May 1: Prepaid rent for three months, $2,400Identify whether each account would appear on the Balance Sheet or the Income Statement. Insurance Expense Salaries (and WageFill in the t-accounts for each situation and label each transaction as Deferrals/Prepaid or Accrual. Calculate the adjustedUsed office supplies of $290. The Office Supplies unadjusted balance on December 31 is $9,800. Adjustment Type: Supplies ExpeUsed office supplies of $290. The Office Supplies unadjusted balance on December 31 is $9,800. Adjustment Type: Supplies ExpeIncurred interest expense of $200. Adjustment Type: Interest Expense Interest PayableJournalize the adjusting entry needed at December 31 for each situation. Use the Chart of Accounts to review account names! CUsed prepaid insurance of $3,200 Date Accounts and Explanation Debit Credit Employees earned $1,900 in salaries that will be

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