Question 6 (20 Marks) Part A ( 4 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) 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 Waterloo Consultants are as follows. Waterloo Consultants Trial Balance As at 30 June 2021 Unadjusted Trial Balance Account Name Debit $ Credit $ Adjusted Trial Balance Debit $ Credit $ 7,425 Cash at bank Accounts receivable 29,700 Prepaid insurance 7,425 7,800 6,720 2,025 67,500 6,160 1,350 Supplies 67,500 Equipment Accumulated depreciation 3.375 16,930 16,930 6,300 Accounts payable Salaries payable Revenue received in advance Capital 5,300 5,300 61,000 61,000 72,300 Service revenue 50,400 Salaries expenses 42 300 36,000 6,160 6,720 Insurance expenses Depreciation expense Supplies expense 3.375 675 133,630 133,630 165,205 165,205 Required: Journalise the adjusting entries that were made on 30 June 2021. Narrations are required. (16 Marks)