Question

_{Cuisine Catering completed the following selected transactions during May 2018: (Click the icon to view the transactions.) Read the requirements. Requirement 1. Show whether each transaction would be handled as a revenue or an expense been completed as an example. (Enter "0" for any transactions that do not affect revenues or exp (Expenses should be shown in parentheses.) Also indicate the dollar amount of the revenue or expense. The May 1 transaction has More Info Amount of Revenue (Expense) for May Cash Basis Amount Accrual Basis Amount Date of Revenue (Expense) May of Revenue (Expense) $ (3,300) $ (600) $ May 1 May 5 0 $ (600) May 9 $ 2,300 $ 2,300 1 Prepaid rent for three months, $3,300. 5 Received and paid electricity bill, $600. 9 Received cash for meals served to customers, $2,300. 14 Paid cash for kitchen equipment, $2,700. 23 Served a banquet on account, $3,700. 31 Made the adjusting entry for rent (from May 1). 31 Accrued salary expense, $1,700. 31 Recorded depreciation for May on kitchen equipment, $45. $ (2,700) $ 0 May 14 May 23 $ 0 $ 3,700 May 31 rent $ 0 $ (1,100) salary $ 0 $ (1,700) May 31 May 31 depr $ 0 $ (45) Print Done Requirement 2. After completing the table, calculate the amount of net income or net loss for Cu Jeses or a minus sign to indicate a loss.) Cash Basis Amount Accrual Basis Amount Net income (loss) Enter any number in the edit fields and then click Check Answer. 1 Pemaining Clear All Check Answer}

Answer 1

Date May. 1 Cash basis amount of revenue (Expense) -3300 -600 2300 Accrual basis amount of revenue (Expense) 0 -600 5 9 2300 0 14 0 23 0 0 31 31 31 3700 -1100 -1700 -45 0 0 Cash basis amount -1,600 Accrual basis amount 2,555 Net income (loss)

Note: Cash paid for purchase equipment on May 14 is not an expense. Thus, no expense should be recognized under both method.

Date Debit Credit 700 Account and explanation Depreciation expense Accumulated depreication (To record depreciation expense) 700 600 Rent expense Prepaid rent (To record rent expense) 600 300 Interest expense Interest payable (To record interest expense) 300 12,800 Salaries expense (16,0000 x 4/5) Salaries payable (To record accrued salaries) 12,800 1,200 Unearned revenue Service revenue (To record unearned revenue earned) 1,200 150 Supplies expense Office supplies (To record the supplies used) 150