Reference no: EM132885290

Sweet Catering completed the following selected transactions during May 2016 below:

May 1: Prepaid rent for three months, $1,200May 5: Received and paid electricity bill, $180
May 9: Received cash for meals served to customers, $2,200
May 14: Paid cash for kitchen equipment, $2,250
May 23: Served a banquet on account, $2,540
May 31: Made the adjusting entry for rent (from May 1).
May 31: Accrued salary expense, $1,780
May 31: Recorded depreciation for May on kitchen equipment, $460

Problem 1: If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May? If there is a loss, enter it with parentheses or a negative sign.

Problem 2: If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May? If there is a loss, enter it with parentheses or a negative sign.