At the end of the first year of operations, Arch Etec, owner of Architecture designs, engagedyou to prepare yearly financial statements for the year ended 30 June 2016 on both the cashbasis and the accrual basis. The following data are a summary of selected transactions thatoccurred during the year. Ignore GST.1) Fees of $125 000 were collected for services provided during the year2) There were $8000 in receivables at 30 June 2016 for services performed on credit3) Cash payments of $106 000 were made for salaries, rent, insurance and otherexpensesincurredduring the year4) Salaries owing but not yet paid amount to $40005) On 15 June 2016, a client paid $3000 in advance for services to be rendered duringthe next financial year6) Expenses of $6000 were prepaid (not included in the $106 000) at 30 June

Required

Explain how the following items would be reported in the business balance sheet under accurual basis

1.the $8000 recievable

2. unpaid salaries of $4000

3. the $3000 advance received on 15 june

4. the cash payment of $6000 for prepaid expense