Bil'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. BILL'S BOARDS Unadjusted Trial Balance At September 30 Account Name Debits Credits Notes Cash $ 17,200 This balance equals the balance reported by the bank. Accounts Receivable 1,310 A customer ordered $1,310 of advertising services so be provided in October. The accountant recorded this service by debiting Accounts Receivable and crediting Service Revenue. Prepaid Rent 1,520 Starting January 1, B8 agreed to pay $2,280 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. Supplies BB still has supplies costing $510 on hand on September 30. Equipment 6,800 BB bought scaffolding and billboards in October last year. Accumulated Depreciation $ Because the equipment was bought at the beginning of the fiscal year, no depreciation is carried forward from prior years. Accounts Payable 2,320 BB purchased and received $2,320 of supplies used for creating advertising displays. The supplier is to be paid in October. 8 Deferred Revenue 1,410 @ 310 Salaries and Wages Payable Income Tax Payable Common Stock Retained Earnings 1,320 4,918 Service Revenue 66,630 displays. The supplier is to be paid in October. This balance relates to $1,410 cash paid by a customer in August for advertising from September 1-November 30. BB employees are still waiting to be paid for the last half of September. BB hasn't paid the $310 tax owed from the last fiscal year. BB has issued 2,620 shares for $1,320 cash. BB started business a few years ago, 50 this is the total accumulated earnings up to October 1 of last year. BB has provided $2,610 of services for which it fasn't yet billed customers or recorded in its accounting records. BB employees earn $4,200 per month. The employees were paid in full on August 31, and were paid again on September 15. About $1,700 of the usefulness of the equipment's $6,800 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 $3,110 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. 46,200 Salaries and Wages Expense Depreciation Expense Rent Expense 760 Supplies Expense 3,110 Income Tax Expense Totals $ 76,900 $ 76,900 Required: Prepare an income statement for the year ended September 30. BILL'S BOARDS Income Statement