Reference no: EM133059493

Question - Part A - The Picture Patch is a photography business that films videos on business occasions. In its first year of operations, The Picture Patch generated revenue of $228,000 for services provided, $126,500 of which was on account and still outstanding at the year-end at 30 June 2021. The Picture Patch also received $15,000 cash in advance on 25 June 2021 for filming a major corporate event in August 2021.

How much service revenue would The Picture Patch has at the year ended 30 June 2021 under:

a) the cash basis of accounting? Show calculation.

b) the accrual basis of accounting? Show calculation.

Part B - The unadjusted trial balance and the adjusted trial balance at 30 June 2021 for Waterloo Consultants are as follows.

Waterloo Consultants Trial Balance As at 30 June 2021
Account Name	Unadjusted Trial Balance		Adjusted Trial Balance
	Debit $	Credit $	Debit $	Credit $
Cash at bank	7,425		7,425
Accounts receivable	7,800		29,700
Prepaid insurance	6,720		6,160
Supplies	2,025		1,350
Equipment	67,500		67,500
Accumulated depreciation		-		3,375
Accounts payable		16,930		16,930
Salaries payable		-		6,300
Revenue received in advance		5,300		5,300
Capital		61,000		61,000
Service revenue		50,400		72,300
Salaries expenses	36,000		42,300
Insurance expenses	6,160		6,720
Depreciation expense	-		3,375
Supplies expense	-		675
	133,630	133,630	165,205	165,205

Required - Journalise the adjusting entries that were made on 30 June 2021 (including narrations).