Some of its customers pay immediately after the job

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Mathematical Applications for the Management, Life, and Social Sciences
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Chapter 1 / Exercise 36
Mathematical Applications for the Management, Life, and Social Sciences
Harshbarger
Expert Verified
Some of its customers pay immediately after the job is finished. Some customers ask that the business send them a bill. On December 31, Safe Home has collected $300 from cash-paying customers. Safe Home’s remaining customers owe the business $1,800.Cash BasisAccrual BasisCash receivedcorrectcorrectcorrectcorrectRevenue RecordedcorrectcorrectcorrectcorrectTotal Revenue RecordedcorrectcorrectSplendid Occasions received $2,600 for services to be performed for the next 8 months on March 31.Cash BasisAccrual BasisCash receivedcorrectcorrectcorrectcorrectRevenue RecordedcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectDecember 31300December 31300December 31300December 3121003002100March 312600March 312600March 312600April 30325May 31325June 30325July 31325August 31325September 30325
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Mathematical Applications for the Management, Life, and Social Sciences
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Chapter 1 / Exercise 36
Mathematical Applications for the Management, Life, and Social Sciences
Harshbarger
Expert Verified
Cash BasisAccrual BasiscorrectcorrectcorrectcorrectTotal Revenue RecordedcorrectcorrectActivity 1.b - More Practice Identifying Differences between Cash and Accrual BasisRead the transactions and fill in the Cash basis/Accrual basis table. Enter expenses in parentheses or with a negative sign. Enter a 0 if there is nothing to record on aspecific date.Delicious Catering completed the following selected transactions during May 2016:May 1: Prepaid rent for three months, $2,400May 5: Received and paid electricity bill, $80May 9: Received cash for meals served to customers, $2,600May 14: Paid cash for kitchen equipment, $3,500May 23: Served a banquet on account, $1,700May 31: Made the adjusting entry for rent (from May 1).May 31: Accrued salary expense, $1,700May 31: Recorded depreciation for May on kitchen equipment, $640October 31325November 3032526002600
Amount of Revenue (Expense) for MayCash BasisAccrual BasiscorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectcorrectActivity 1.c - Identifying Differences between Cash and Accrual BasisRead each scenario, decide whether the company is using Cash basis or Accrual basis, and then enter your answer to the question.The Purple Tulip Law Firm prepays for advertising in the local newspaper. On January 1, the law firm paid$180 for six months of advertising. Purple Tulip Law Firm recorded $180 in the Prepaid Advertising account.
May 1(2400)0May 5(80)(80)May 926002600May 14(3500)0May 2301700May 310(800)May 31(1700)May 31(640)

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