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. Account Name Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation Accounts Payable Deferred Revenue BILL'S BOARDS Unadjusted Trial Balance At September 30 Debits Credits Notes $13, 400 This balance equals the balance reported by the bank. 1,020 A customer ordered $1,020 of advertising services to be provided in October. The account ant recorded this service by debiting Accounts Receivable and crediting Service Revenue. 640 Starting January 1, BB agreed to pay $960 cash to rent the land on which its billboards are located, for the January-December period. The account ant adjusted this account on April 30 but has not adjusted it since. BB still has supplies costing $220 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 forward from prior years. 2,120 BB purchased and received $2,120 of supplies used for creating advertising displays. The supplier is to be paid in October 1,530 This balance relates to $1,530 cash paid by a customer in August for advertising from September 1-Novenber 30. nployees are still waiting to be paid for the last half of September. 510 BB hasn't paid the $510 tax owed from the last fiscal year. 2, 410 BB has issued 4, 810 shares for $2,410 cash. 9, 110 BB started business a few years ago, so this is the tot al accumulated earnings up to October 1 of last year. 57, 220 BB has provided $4, 820 of services for which it hasn't yet billed customers or recorded in its accounting records. 47,600 BB's employees earn $5, 600 per month. The employees were paid in full on August 31, and were paid again on September 15. About $1,400 of the usefulness of the equipment's $5, 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. 3,920 BB' s accountant expensed $3,920 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. $72,900 $72.900 Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Depreciation Expense Rent Expense Supplies Expense Income Tax Expense Totals General Statement of General Income Requirement Trial Balance Retained Journal Statement Balance Sheet Ledger Earnings Prepare the adjusting journal entries for the year ended September 30. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet Record the entry to fix the premature recording of advertising revenue. Note: Enter debits before credits. Debit Credit Date Sep 30 General Journal Service Revenue Accounts Receivable Record entry Clear entry View general journal 5 6 7 8 Record the entry to update deferred revenue. Note: Enter debits before credits. Debit Credit Date Sep 30 General Journal Deferred Revenue Service Revenue Record entry Clear entry View general journal Record the entry to accrue revenue not yet billed. Note: Enter debits before credits. Debit Credit Date Sep 30 General Journal Accounts Receivable Service Revenue Record entry Clear entry View general journal Journal entry worksheet Record the entry to accrue unpaid wages. Note: Enter debits before credits. Debit Credit Date Sep 30 General Journal Salaries and Wages Expense Salaries and Wages Payable Record entry Clear entry View general journal Record the entry to accrue income taxes for the year. Note: Enter debits before credits. Date Debit Credit Sep 30 General Journal Income Tax Expense Income Tax Payable Record entry Clear entry View general journal Adjusted - BILL'S BOARDS Income Statement For the Year Ended September 30 obv BILL'S BOARDS Statement of Retained Earnings For the Year Ended September 30 Beginning Balance Ending Balance BILL'S BOARDS INC. Balance Sheet At September 30 Liabilities $ Current Liabilities | Common Stock Retained Earnings $ 2,410 9,110 Assets Current Assets Cash Supplies Accounts Receivable Equipment Accumulated Depreciation Equipment Prepaid Rent 13,400 220 1,020 5,600 1,400 240 21,880 $ 11,520 Total Current Liabilities Stockholders' Equity Equipment, Net Total Assets | $ 21,880 Total Liabilities and Stockholders' Equity $ 11,520 Statement of Retained Earnings Balance Sheet >