Final answer:
The transaction representing June's revenue according to accrual accounting is the completion of accounting services for $30,000 on June 28, payable within 7 days.
Step-by-step explanation:
The transaction for June that represents revenue for the month of June using the accrual based accounting concept is: Completed accounting services for $30,000 on June 28, payable in 7 days. According to the accrual basis of accounting, revenues are recognized when earned regardless of when the cash is received. This is in contrast to the cash basis of accounting where revenues are recognized when cash is received.
Here's why the other options do not represent revenue for June under accrual accounting:
- Collected $5,000 in advance for services to be provided in August is not revenue for June, because the service will be performed in the future.
- Collected cash of $20,000 from an account receivable outstanding since May is not considered June revenue because it was likely recognized as revenue when the service was performed, according to accrual accounting principles, not when cash was collected.
- Borrowing $80,000 from the bank does not represent revenue as it is a loan which is a liability, not income.