Comparing accrual and cash basis accounting Smith’s Stews, Inc., completed the following transactions during April, 2012:
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Apr 1 |
Prepaid rent for April through July, $4,800. |
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2 |
Purchased computer for cash, $3,600. |
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3 |
Performed catering services on account, $3,400. |
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5 |
Paid Internet service provider invoice, $225. |
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6 |
Catered wedding event for customer and received cash, $2,000. |
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8 |
Purchased $130 of supplies on account. |
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10 |
Collected $1,900 on account. |
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14 |
Paid account payable from April 8. |
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15 |
Paid salary expense, $1,000. |
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30 |
Recorded adjusting entry for rent (see April 1). |
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30 |
Recorded $100 depreciation on computer. |
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30 |
There are $35 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 table.
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Amount of Revenue (Expense) for April |
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Cash Basis Amount |
Accrual Basis Amount |
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Date |
of Revenue (Expense) |
of Revenue (Expense) |
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Apr |
1 |
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