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3 years ago

Sweet Catering completed the following selected transactions during May 2016:

Business

1 answer:

My name is Ann [436]3 years ago

3 0

If Sweet Catering had recorded transactions using the Cash method, the net loss recorded for the month of May would have ($3,730).

<h3>What is the cash basis of accounting?</h3>

The cash basis of accounting is the opposite of the accrual basis. This accounting method records transactions based on the occurrence of cash receipts and payments.

On the other hand, the accrual basis takes into consideration all transactions that pertain to the period whether cash movements are involved or not.

<h3>Transaction Analysis:</h3>

May 1: Prepaid Rent $2,400 Cash $2,400

May 5: Electricity $60 Cash $60

May 9: Cash $2,610 Sales Revenue $2,610

May 14: Kitchen equipment $3,880 Cash $3,880

May 23: Accounts Receivable $2,050 Sales Revenue $2,050

May 31: Rent Expense $800 Prepaid Rent $800

May 31: Salary expense $730 Salaries Payable $730

May 31: Depreciation Expense- kitchen equipment, $780 Accumulated Depreciation $780

Cash Accounting for net income (loss):

Cash Revenue $2,610

Kitchen equipment -3,880

Prepaid rent -2,400

Electricity -60

Net loss = $3,730

Thus, if Sweet Catering had recorded transactions using the Cash method, the net loss recorded for the month of May would have ($3,730).

Learn more about cash basis accounting at brainly.com/question/4555544

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4 years ago

A company has $4,500 in its Revenue account at the end of a period. The expenses are as follows: Rent, $750; Utilities, $150; Sa

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For the answer to the question above,
Revenue . . . . . . . . . . . . . . . . . . . .4,500

less: Expenses
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Salaries . . . . . .2400
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(Since you are just in highschool I would assume insurance is expense, because there are insurance that are Payables and not expense)
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