Required information
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 September fiscal yearend. You have reviewed the balances with William and made notes shown in the right
column.
prior years.
BB purchased and received $ of supplies used for creating advertising displays. The supplier is to be paid in October.
This balance relates to $ cash paid by a customer in August for advertising from September November
BB employees are still waiting to be paid for the last half of September.
BB hasn't paid the $ tax owed from the last fiscal year.
BB has issued shares for $ cash.
BB started business a few years ago, so this is the total accumulated earnings up to October of last year.
BB has provided $ of services for which it hasn't yet billed customers or recorded in its accounting records. BB employees earn $ per month. The employees were paid in full on August and were paid again on September About $ of the usefulness of the equipment's $ cost has been used up during the current fiscal year.
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 accountant expensed $ of supties purchased during the year because he assumed the supplies would be completely used by yearend. As noted above, he was wrong.
tax rate is of income before tax.