The Picture Patch is a photography business that films videos on business occasions. In its first...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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) b) the accrual basis of accounting? Show calculation. (2 Marks) the cash basis of accounting? Show calcuiation. (2 Marks) Part B (16 Marks) The unadjusted trial balance and the adjusted trial balance at 30 June 2021 for Waterioo Consultants are as follows. Waterloo Consultants Trial Balance As at 30 June 2021 Unadjusted Trial Balance Adjusted Trial Balance Account Name Debit S Credit S Debit $ Credit S Cash at bank 7,425 7,425 Accounts receivable 7,800 29,700 Prepaid insurance 6,720 6,160 2,025 1,350 Supplies 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 61,000 61,000 72,300 Capital Service revenue 50,400 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. Narrations are required. (16 Marks) 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) b) the accrual basis of accounting? Show calculation. (2 Marks) the cash basis of accounting? Show calcuiation. (2 Marks) Part B (16 Marks) The unadjusted trial balance and the adjusted trial balance at 30 June 2021 for Waterioo Consultants are as follows. Waterloo Consultants Trial Balance As at 30 June 2021 Unadjusted Trial Balance Adjusted Trial Balance Account Name Debit S Credit S Debit $ Credit S Cash at bank 7,425 7,425 Accounts receivable 7,800 29,700 Prepaid insurance 6,720 6,160 2,025 1,350 Supplies 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 61,000 61,000 72,300 Capital Service revenue 50,400 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. Narrations are required. (16 Marks)
Expert Answer:
Answer rating: 100% (QA)
Answer a Cash basis revenue june month sale cash received ... View the full answer
Posted Date:
Students also viewed these accounting questions
-
In its first year of operations Lien Corporation entered into the following transactions, among others: 1. January 1: Bought equipment, $105,000. 2. March 31: Prepaid one year's rent, $24,000. 3....
-
1. If the accretion expense at the end of 2021 is $20,946, what will be the accretion expense at the end of 2022 (all other variables remain the same)? Assume the credit-adjusted risk-free rate used...
-
At the end of its first year of operations on December 31, 2014, NBS Companys accounts show the following. The capital balance represents each partners initial capital investment. Therefore, net...
-
1.3 WANEFMAC7 1.3.007. Find the equation of the given linear function. \[ f(x)= \] WANEFMAC7 1.3.015. Find the slope of the given line, if it is defined. (If an answer is undefined, enter UNDEFINED.)...
-
How do the auditors consider the laws and regulations related to an audit client during the audit process?
-
A series RLC circuit resonates at 1000 rad/s. If C = 20F, and it is known that the impedance at resonance is 2.4, compute the value of L, the Q of the circuit, and the band width.
-
Meagan Enterprises reported the following information for the past year of operations: For each transaction, indicate whether the ratio will (I) increase, (D) decrease, or (N) have no effect....
-
Use the information in Exercise 1-14 to prepare an October 31 statement of cash flows for Real Answers. In Exercise 1-14, On October 1, Keisha King organized Real Answers, a new consulting firm; on...
-
Data for Barry Computer Co. and its industry averages follow. The firm's debt is priced at par, so the market value of its debt equals its book value. Since dollars are in thousands, number of shares...
-
Determine the forces in members AB , AC , and AD . Point M is the centroid of triangle BCD . The forces are positive if in tension, negative if in compression. B 5.2' M 5.2' 1190 lb x D 5.2 6.6'
-
Powder Parent acquired 100% of Snow Subsidiary on January 1, 2017. The purchase price was $370,000 in excess of Snow's book value of Stockholders Equity on the acquisition date. Such excess was...
-
Two primary differences between business-to-business and business-to-consumers are the marketing audience and the "buying processes and characteristics," (Kerin & Hartley, 2022). The marketing...
-
a ) Show how a temporary increase in the money supply affects the domestic interest rate and exchange rate in the short - run?
-
How one company approaches its marketing efforts can vary quite a bit from another, depending on the product or service each company is trying to sell. By focusing on the elements of the marketing...
-
Assume 2 0 2 3 tax year. Shelley and Tyler ( MFJ ) have interest income of $ 8 , 0 0 0 , dividend income of $ 1 , 5 0 0 , net rental income of $ 6 , 0 0 0 , and tax - exempt interest income of $ 1 6...
-
n a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so (very price sensitive). What is another way to state this fact? Market supply is much less...
-
1 2 3 4 Appendix D Beam Deflections and Slopes Maximum Deflection Slope at End Equation of Elastic Curve Beam and Loading Elastic Curve L X PL PL Yux 3 2EI W L x y L I L M O L 5 L P b y 6 A M A A BY...
-
The company manufactures three products: wooden chairs, tables and dressers. AFC started off as a 'Mom & Pop' shop but has grown rapidly. AFC uses one assembly line to build all three products,...
-
In a competitive labor market in equilibrium, a. a firms MRP = MP MR. b. a firms MRP = MP P. c. a firms MRP = MRC. d. a firms wage = MRC. e. all of the preceding are true.
-
In a competitive labor market, a. a firm is a wage taker. b. a firm can hire all the labor it wishes to at the market wage. c. a firm hires a small fraction of the total market quantity of labor...
-
The marginal resource cost of an input a. is the amount an added unit of an input adds to a firms total cost. b. exceeds the market wage in a competitive industry. c. is less than the market wage in...
Study smarter with the SolutionInn App