The Picture Patch is a photography business that films videos on business occasions. In its first...

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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)

Answer rating: 100% (QA)

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