As at 30 June 2019, the unadjusted trial balance of Green Ltd was noted as follows:

Green Ltd

TRIAL BALANCE

AS AT 30 JUNE 2019

Accounts	Debit ($)	Credit ($)
Cash at bank	8 985
Account receivables	31 200
Prepaid insurance	3 900
Office Supplies	4 680
Office equipment	14 100
Accumulated depreciation - equipment		2 850
Accounts payable		315
Salary payable
Unearned service revenue		1 230
Loan payable		10 500
Capital		33 300
Drawings	60 000
Service revenue		159 270
Salary expenses	66 000
Depreciation expenses - equipment
Miscellaneous expenses	18 600
TOTAL	207 465	207 465

The following additional information is available at the end of June for adjustments:

• A physical count of office supplies on 30 June shows $660 of unused supplies on hand
• Depreciation of the office equipment is 10% each year (straight line method is used)
• Of the $1230 unearned service revenue, $300 is still unearned
• Of prepaid insurance, 60% expired this period
• Salaries owed but not yet paid $1920
• Provided consultancy service of $2000 on credit. This was not recorded for the month.

Required:

1. Prepare adjusting entries at the end of 30 June, 2019. (6 marks)
2. Calculate the balance of the total revenue of the company after adjustment. (2 marks)
3. Explain why accrual accounting adjustments are required? (3 marks)