The accountant of ABC Limited has prepared the following unadjusted trial balance of ABC Limited on 30th June 2021. Yellow Limited TRIAL BALANCE AS AT 30th JUNE 2021 Accounts Debit ($) Credit ($)

Cash at bank 13 985 Account receivables 26 200 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:

• Mr Emmanuel is working as the inventory clerk. He performs the physical count of the office supplies on 30^thJune 2021. This physical count reveals that the unused office supplies of $550 are on hand.
• The rate of depreciation for the office equipment is 15% per annum and ABC Limited used the straight-line method of depreciation.
• Of the $1230 unearned service revenue, $300 is still unearned
• 60% of prepaid insurance is expired during this period.
• Salaries owed but not yet paid $1920.
• Provided consultancy service of $2000 on credit. This was not recorded for the month

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)