Bills 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.

What is the income tax expense?

Account Name Cash Accounts Receivable Prepaid Rent Supplies Equipment Accumulated Depreciation Accounts Payable Deferred Revenue 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 BILL'S BOARDS Unadjusted Trial Balance At September 30 Credits Notes This balance equals the balance reported by the bank. A customer ordered $1,220 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 $2,160 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. $0 Because the equipment was bought at the beginning of the fiscal year, no depreciation is carried forward from prior years. 3,510 BB purchased and received $3,510 of supplies used for creating advertising displays. The supplier is to be paid in October. 1,590 This balance relates to $1,590 cash paid by a customer in August for advertising from September 1-November 30. 0 BB employees are still waiting to be paid for the last half of September. 610 BB hasn't paid the $610 tax owed from the last fiscal year. 2,920 BB has issued 5,820 shares for $2,920 cash. 11,020 BB started business a few years ago, so this is the total accumulated earnings up to October 1 of last year. 59,540 BB has provided $5,820 of services for which it hasn't yet billed customers or recorded in its accounting records. BB employees earn $5,800 per month. The employees were paid in full on August 31, and were paid again on September 15. About $2,300 of the usefulness of the equipment's $9,200 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 $6,610 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. Debits $ 12,200 1,220 1,440 0 9,200 47,800 0 720 6,610 0 $79,190 $ 79,190 No 1 2 3 4 5 6 7 8 Transaction a b d e f g h Answer is complete but not entirely correct. General Journal Service Revenue Accounts Receivable Rent Expense Prepaid Rent Depreciation Expense Accumulated Depreciation Deferred Revenue Service Revenue Accounts Receivable Service Revenue Salaries and Wages Expense Salaries and Wages Payable Supplies Supplies Expense Income Tax Expense Income Tax Payable Debit 1,220 900 2,300 530 5,820 2,900 510 794 Credit 1,220 900 2,300 530 5,820 2,900 510 794