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)

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