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 30 fiscal year-end. You have reviewed the balances with William and made notes shown in the right column. Cash Account Name Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation Accounts Payable Deferred Revenue BILL'S BOARDS Unadjusted Trial Balance At September 30 Debits Credits $ 17,900 Notes This balance equals the balance reported by the bank. 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. Starting January 1, BD 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. BB bought scaffolding and billboards in October last year. Because the equipment was bought at the beginning of the fiscal year, no depreciation is carried forvard from prior years. BB purchased and received $2,710 of supplies used for creating advertising displays. The supplier is to be paid in October. 1,040 0 7,600 $0 2,710 1,380 This balance relates to $1,300 cash paid mer in August for advertising Salaries and Wagen Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Rent Expense Supplies Expense Income Tax Expense Totals 47,000 0 520 4,310 0 320 1,510 5,720 68,250 $79,890 $ 79,890 M www.w g from September 1-November 30. BD employees are still waiting to be paid for the last half of September. BB hasn't paid the $320 tax oved from the last fiscal year. BB has issued 3,010 shares for $1,510 eah. BB started business a few years ago, so this is the total accumulated earnings up to October 1 of last year. BB has provided $3,010 of services for which it hasn't yet billed customers or recorded in its accounting records. BB 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. 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 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 tax rate is 20% of income before tax. Prepare a statement of retained earnings for the year ended BILL'S BOARDS Statement of Retained Earnings Beginning Balance Ending Balance $ 0 BILL'S BOARDS Balance Sheet $ $ 0 10 0 $ $