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prepare the adjusting journal entries for the year ended September 30. Bill's Boards (BB) is an outdoor advertising company founded by William Longfall. William knows
prepare the adjusting journal entries for the year ended September 30.
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 September 30 fiscal year-end. You have reviewed the balances with William and made notes shown in the right column. 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 2,810 shares for $1,42 cash. BB started business a fen years ago, so this is the total accumulated earnings up to October 1 of last year. BB has provided $2,820 of services for which it hasn't yet billed customers or recorded in its accounting records. BB employees earn $4,500 per month. The employees were paid in full on August 31, and were paid again on Septeaber 15. About $2,100 of the usefulness of the equipment's $8,400 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 fori the current year has been paid in full. BB accountant expensed $4,110 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. Prepare the adjusting joumal 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.) Journal entry worksheet 445678>)> Record the entry to fix the premature recording of advertising revenue. Note: Enter debits before credits Step by Step Solution
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