Saved Required information E420 Preparing Adjusting Entries, an Adjusted Trial Balance, and Financial Statements LO 4-1 LO 4-2 LO 4-3 and LO 4-4) Bill's Boards (BB) 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 Account Name Cash Accounts Receivable Debits Credits Notes $12,300 928 This balance equals the balance reported by the bank A customer ordered $920 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 $1,560 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 $310 on hand on September 30. 8B bought scaffolding and billboards in October last year. Prepaid Rent 1,840 Supplies Equipment Accumulated Depreciation 7,200 $ e Because the equipment was bought at the beginning of the fiscal year, no depreciation is carried forward from prior years- Accounts Payable 2,510 BB purchased and received $2,510 of supplies used for creating advertising displays. The supplier is to be paid in October. Deferred Revenue 1,440 This balance relates to $1,440 cash paid by a customer in August for advertising from September 1-November 3. Salaries and Wages Payable Income Tax e BB's employees are still waiting to be paid for the last half of September 310 BB hasn't paid the $310 tax owed from the last fiscal year. Next Saved 310 8B hasn't paid the $310 tax owed from the last fiscal year. Incone Tax Payable Common Stock Retained Earnings 1,420 88 has issued 2,820 shares for $1,428 cash. 5,310 88 started business a few years ago, so this is the total accumulated earnings up to October 1 of last year. Service Revenue 61,580 8B has provided $2,828 of services for which it hasn't yet billed customers or recorded in its accounting records BB's employees earn $4,600 per month. The employees were paid in ful1 on August 31, and were paid again on September 15. About $1,800 of the usefulness of the equipment's $7,200 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 88's accountant expensed $3,718 of supplies purchased during the year because 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 46,600 Depreciation Expense Rent Expense 728 Supplies Expense3,71 he assuned the supplies would be Income Tax Expense Totals $72,490 $72,498 E4-20 Part 4 Prepare an income statement for the year ended September 30