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 $ 12,400 This balance equals the balance reported by the bank. 810 A customer ordered $81% of advertising services to be provided in October. The accountant recorded this service by debiting Accounts Receivable and crediting Service Revenue. 1,360 Starting January 1, BB agreed to pay $2,840 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. 6, Bee 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. 2,310 BB purchased and received $2,318 of supplies used for creating advertising displays. The supplier is to be paid in October 1,410 This balance relates to $1,418 cash paid by a customer in August for advertising from September 1-November 30. BB's employees 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 total accumulated earnings up to October 1 of last year. 57,610 BB has provided $4,820 of services for which it hasn't yet billed customers or recorded in its accounting records. 47,700 BB's employees earn $5,700 per month. The employees were paid in full on August 31, and were paid again on September 15. About $1,58% of the usefulness of the equipment's $6,880 cost has been used up during the current fiscal year. 680 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. 4,410 BB's accountant expensed $4,410 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. $ 73,360 $ 73,360 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 Statement of General General Income Requirement Journal Trial Balance Retained Balance Sheet Ledger Statement 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.)
