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Bill's Boards (8B) is an outdoor advertising company founded by William Longfall. William knows very little accounting so he hired a friend to keep the

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Bill's Boards (8B) is an outdoor advertising company founded by William Longfall. William knows very little accounting so he hired a friend to "keep the books." Unfortunately, William did not review his friend's work and now it seems his friend has made a mess of the accounting records. William has provided you the following list of unadjusted account balances at BB's September 30 fiscal year-end. You have reviewed the balances with William and made notes shown in the right column. BILL'S BOARDS Unadjusted Trial Balance At September 30 Debits Credits Notes Account Name Cash 10,000 This balance equals the balance reported by the bank A customer ordered $720 of advertising services to be provided in October. The accountant recorded this service by debiting Accounts Receivable and crediting Service Revenue. Starting January 1, BB agreed to pay $2,040 cash to rent the land on which its billboards are located, for the January-December period. The accountant adjusted this account on April 30 but has not adjusted it since. BB still has supplies costing $410 on hand on September 30. BB bought scaffolding and billboards in October last year Accounts Receivable 720 Prepaid Rent 1,360 Supplies Equipment Accumulated Depreciation 7,600 0 Because the equipment was bought at the 2,620 3B purchased and received $2,620 of supplies 1,350 This balance relates to $1,350 cash paid bya beginning of the fiscal year, no depreciation is carried forward from prior years. Accounts Payable used for creating advertising displays. The supplier is to be paid in October. Deferred Revenue customer in August for advertising from September 1-November 30. 0 BB's employees are still waiting to be paid for Salaries and Wages Payable Income Tax Payable Common Stock the last half of September. 320 BB hasn't paid the $320 tax owed from the last fiscal year ,410 BB has issued 2,810 shares for $1,410 cash Retained Earnings 5,310 BB started business a few years ago, so this is Income Tax Payable Common Stock Retained Earnings 320 BB hasn't paid the $320 tax owed from the last fiscal year. 1,410 BB has issued 2,810 shares for $1,410 cash. 5,310 BB started business a few years ago, so this is the total accumulated earnings up to October 1 of last year Service Revenue 59,390 BB has provided $2,810 of services for which it hasn't yet billed customers or recorded in its accounting records. BB's employees earn $4,400 per month. The employees were paid in full on August 31, and were paid again on September 15. About $1,900 of the usefulness of the equipment's $7,600 cost has been used up during the current fiscal year. BB incurs a small cost to rent the land on which its billboards are located. Rent for the current year has been paid in full. BB's accountant expensed $3,610 of supplies purchased during the year because he assumed the supplies would be completely used by year- end. As noted above, he was wrong BB's tax rate is 20% of income before tax. Salaries and Wages Expense 46,400 Depreciation Expense Rent Expense 710 Supplies Expense 3, 610 Income Tax Expense Totals 70,400 70,400 pare the adjusting journal entries for the year ended September 30. (lano entry is required for a transaction/event, select "N urnal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit Service Revenue 920 Deferred Revenue 920 General Journal Debit Credit No Transaction Service Revenue 920 920 Deferred Revenue 850 Rent Expense 850 Prepaid Rent Depreciation Expense 1,900 1,900 Accumulated Depreciation Equipment Service Revenue Deferred Revenue Accounts Receivable Service Revenue Salaries and Wages Expense Salaries and Wages Payable Supplies Supplies Expense ncome Tax Expense Income Tax Payable Summarize the adjusting journal entries in T-accounts. After entering the beginning balances and comput balances Cash Accounts Receivable Beg. Bal. Beg. Bal. End. Bal. End. Bal. Prepaid Rent Supplies Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal Equipment Accumulated Depreciation Beg. Bal Beg. Bal. End. Bal. 01 End. Bal. 0 Accounts Payable Deferred Revenue Beg. Bal. Beg. Bal. Accounts Payable Deferred Revenue Beg. Bal. Beg. Bal. End. Bal. End. Bal Salaries and Wages Payable Income Tax Payable Beg. Bal. Beg. Bal End. Bal. 0 End. Bal. Common Stock Retained Earnings Beg. Bal. Beg. Bal End. Bal. 0 End. Ba 0 Service Revenue Salaries and Wages Expense Beg. Bal. Beg. Bal Fnd. Bal Fnd. Ral Service Revenue Salaries and Wages Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal Depreciation Expense Rent Expense Beg. Bal Beg. Bal End. Bal End. Bal Supplies Expense Income Tax Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Prepare an income statement for the year ended September 30. BILL'S BOARDS Income Statement Prepare a statement of retained earnings for the year ended September 30 BILL'S BOARDS Statement of Retained Earnings Beginning Balance Ending Balance Prepare a classified balance sheet for the year ended September 30. (Amounts to be deducted should be indicated by a minus sign.) BILL'S BOARDS INC. Balance Sheet

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