For each transaction, determine the amount of revenue or expense, if any, that is recorded under accrual-basis accounting and under cash-basis accounting. (Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)
Accrual-Basis | Cash-Basis | ||||
Transaction | Revenue | Expense | Revenue | Expense | |
1. | Receive cash from customers at the time of service, $2,700. | $ | $ | $ | $ |
2. | Issue common stock for cash, $5,000. | ||||
3. | Receive cash from customers who were previously billed, $1,200. | ||||
4. | Record depreciation of equipment, $500. | ||||
5. | Pay workers’ salaries for the current month, $600. | ||||
6. | Pay for rent one year in advance, $2,400. | ||||
7. | Repay a long-term note to the bank, $2,000. | ||||
8. | Pay workers’ salaries for the previous month, $750. | ||||
9. | Pay dividends to stockholders, $400. | ||||
10. | Purchase office supplies for cash, $440. | ||||