BILL'S BOARDS Unadjusted Trial Balance At September 30 Account Name Cash Debits $ 17,900 Accounts Receivable 1,520 Prepaid Rent 1,040 Supplies Equipment Accumulated Depreciation Accounts Payable 0 7,600 Credits Notes: $ 0 2,710 0 320 1,510 5,720 68,250 Deferred Revenue 1,380 Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense 47,000 Depreciation Expense Rent Expense 0 520 Supplies Expense 4,310 Income Tax Expense Totals 0 $ 79,890 $ 79,890 This balance equals the balance reported by the bank. 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, BB 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 forward from prior years. BB purchased and received $2,710 of supplies used for creating advertising displays. The supplier is to be paid in October. This balance relates to $1,380 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. BB hasn't paid the $320 tax owed from the last fiscal year. BB has issued 3,010 shares for $1,510 cash. BB started business a few years ago, s0 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's 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's 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's tax rate is 20% of income before tax. 1 No Date Sep 30 Service Revenue Accounts Receivable General Journal Debit Credit 1,520 1,520 2 Sep 30 Rent Expense 650 Prepaid Rent 650 3 Sep 30 Depreciation Expense 1,900 Accumulated Depreciation 1,900 4 Sep 30 Deferred Revenue Service Revenue 5 Sep 30 Accounts Receivable Service Revenue 460 460 3,010 3,010 6 Sep 30 Salaries and Wages Expense 2,500 Salaries and Wages Payable 2,500 7 Sep 30 Supplies Supplies Expense 310 310 8 Sep 30 Income Tax Expense Income Tax Payable 2,726 2,726 BILL'S BOARDS Income Statement For the Year Ended September 30 $ 0 0 0 0 0 0 0 0 $ 0 BILL'S BOARDS Statement of Retained Earnings For the Year Ended September 30 Beginning Balance 0 Ending Balance $ 0 Equipment, Net BILL'S BOARDS Balance Sheet At September 30 $ 0 0 0 0 0 0 $ SA 0 0 0 0 0 0 0 0 0