Problem

Comparing accrual and cash basis accounting [15-25 min]Schaad’s Stews, Inc., completed the...

Comparing accrual and cash basis accounting [15-25 min]

Schaad’s Stews, Inc., completed the following transactions during June, 2012:

Jun 1	Prepaid rent for June through September, $3,600.
2	Purchased computer for cash, $900.
3	Performed catering services on account, $2,300.
5	Paid Internet service provider invoice, $100.
6	Catered wedding event for customer and received cash, $1,500.
8	Purchased $150 of supplies on account.
10	Collected $1,200 on account.
14	Paid account payable from June 8.
15	Paid salary expense, $1,200.
30	Recorded adjusting entry for rent (see June 1).
30	Recorded $25 depreciation on computer.
30	There are $40 of supplies still on hand.

Requirement

1. Show whether each transaction would be handled as a revenue or an expense, using both the accrual and cash basis, by completing the following table.