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Category > Accounting Posted 23 Jul 2017 My Price 9.00

Schaad’s Stews, Inc

Comparing accrual and cash basis accounting  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.

Amount of Revenue (Expense) for June

 

Cash-Basis Amount

Accrual-Basis Amount

Date

of Revenue (Expense)

of Revenue (Expense)

Jun

1

 

 

 

Answers

Maurice Tutor
(5)
Status NEW Posted 23 Jul 2017 10:07 PM My Price 9.00

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