Question 6 (20 Marks) Part A (4 Marks) Seven Seas Studios is a photography business that films videos on business occasions. In its first year of operations, Seven Seas Studios generated revenue of $317,000 for services provided, $145,600 of which was on account and still outstanding at the year-end at 30 June 2021. Seven Seas Studios also received $20,000 cash in advance on 26 June 2021 for filming a major corporate event in August 2021. How much service revenue would Seven Seas Studios has at the year ended 30 June 2021 under: a) the cash basis of accounting? Show calculation. (2 Marks) b) the accrual basis of accounting? Show calculation. (2 Marks) Part B (16 Marks) The unadjusted trial balance and the adjusted trial balance at 30 June 2021 for Hornsby Consultants are as follows. Hornsby Consultants Trial Balance As at 30 June 2021 Unadjusted Trial Balance Adjusted Trial Balance Account Name Debit $ Credit $ Debit $ Credit $ Cash at bank 8,500 8,500 Accounts receivable 11,500 20,000 Prepaid rent 2,000 3,400 1,600 42,000 42,000 Supplies Equipment Accumulated depreciation Accounts payable Wages payable 3,500 17,000 17,000 5,800 Revenue received in advance Capital 4,900 45,000 65,400 4,900 45,000 73,900 Service revenue Wages expenses 42,300 22,000 Rent expenses Depreciation expense Supplies expense 48,100 24,000 3,500 2,400 150,100 600 132,300 132,300 150,100