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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 Debits Credits Notes Cash $ 17,900 This balance equals the balance reported by the bank. Accounts Receivable 1,520 A customer ordered $1,520 of advertising services to be provided in October. The accountant recorded this service by debiting Accounts Receivable and crediting Service Revenue. Prepaid Rent 1,040 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. Supplies BB still has supplies costing $310 on hand on September 30. Equipment 7,600 BB bought scaffolding and billboards in October last year. Accumulated Depreciation $ Because the equipment was bought at the beginning of the fiscal year, no depreciation is carried forward from prior years. Accounts Payable 2,710 BB purchased and received $2,710 of supplies used for creating advertising displays. The supplier is to be paid in October. Deferred Revenue 1,380 This balance relates to $1,388 cash paid by a customer in August for advertising from September 1-November 30. Salaries and Wages 0 BB's employees are still waiting to be Payable paid for the last half of September. Income Tax Payable 320 BB hasn't paid the $320 tax owed from the last fiscal year. Common Stock 1,510 BB has issued 3,010 shares for $1,510 ALLU OGUL Deferred Revenue Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Service Revenue wu pui CHQSCU NUCLEAVCU IUU! supplies used for creating advertising displays. The supplier is to be paid in October 1,380 This balance relates to $1,380 cash paid by a customer in August for advertising from September 1-November 30. 0 BB's employees are still waiting to be paid for the last half of September. 320 BB hasn't paid the $320 tax owed from the last fiscal year. 1,510 BB has issued 3,010 shares for $1,510 cash. 5,720 BB started business a few years ago, so this is the total accumulated earnings up to October 1 of last year. 68,250 BB has provided $3,010 of services for which it hasn't yet billed customers or recorded in its accounting records. 47,000 BB's employees earn $5,000 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. 520 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. 4,310 BB's accountant expensed $4,310 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. $ 79,890 $ 79,890 Salaries and Wages Expense Depreciation Expense Rent Expense Supplies Expense Income Tax Expense Totals Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet ---- Contambaran View transaction list View journal entry worksheet Debit Credit No Date General Journal 1,520 1 Sep 30 Service Revenue Accounts Receivable 1,520 650 2 Sep 30 Rent Expense Prepaid Rent 650 310 3 Sep 30 Supplies Supplies Expense 310 460 4 Sep 30 Deferred Revenue Service Revenue 460 3,010 5 Sep 30 Accounts Receivable Service Revenue 3,010 2,500 6 Sep 30 Salaries and Wages Expenso Salaries and Wages Payable 2,500 1.900 7 Sep 30 Depreciation Expense Accumulated Depreciation 1.900 8 Sep 30 Income Tax Expense Income Tax Payable

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