Bill's Boards (BB) is an outdoor advertising company founded by William Longfall. William knows very little accounting so he hired a friend to "eep 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 360 Debits $ 17,200 Credits Notes Account Name Cash This balance equals the balance reported by the bank. A customer ordered $1,310 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 $2,280 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 $510 on hand on September 30 BB bought scaffolding and billboards in October last year Accounts Receivable 1,310 Prepaid Rent 1,520 Supplies Equipment Accumulated Depreciation 6,800 0 Because the equipment was bought at the beginning of the fiscal year, no depreciation is carried forward Trom prior years. Accounts Payable 2,320 BB purchased and received $2,320 of supplies used for creating advertising displays. The supplier is to be paid in October. Deferred Revenue 1,410 This balance relates to $1,410 cash paid by a customer in August for advertising from September 1- November 30 Salaries and Wages Payable Income Tax Payable Common Stock 0 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. 1,320 BB has issued 2,620 shares for $1,320 cash. Retained Earnings 4,910 BB started business a few years ago, so this is the total accumulated earnings up to October 1 of last year Service Revenue 66,480 BB has provided $2,610 of services for which it hasn't yet billed customers or recorded in its accounting records accounting records BB's employees earn $4,200 per month. The employees were paid in full on August 31, and were paid again on September 15 About $1,700 of the usefulness of the equipment's $6,800 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 $3,110 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 46,200 Depreciation Expense Rent Expense 610 Supplies Expense 3,110 Income Tax Expense Totals $ 76,750 76,750 Journal entry worksheet 2 3 4 5 6 7 8 Record the entry to fix the premature recording of advertising revenue. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal 3 4 5 6 7 8 Record the entry to update the rent accounts. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 4 5 6 7 8 Record the depreciation on equipment for the period Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 3 4 6 7 8 Record the entry to accrue revenue not yet billed Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 7 8 Record the entry to accrue unpaid wages. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 6 7 8 Record the entry to correct the supplies accounts. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 2 3 4 5 6 7 8 Record the entry to accrue income taxes for the year. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal